Why is the Real Estate

Market Unseasonably Hot?

Why is the Real Estate

Market Unseasonably Hot?

December 2021 Newsletter

As we touched on last month, winter is usually the season when real estate slows down...but that may not be the case this year. The weather has been unseasonably warm, and the real estate market is looking similar.

 

Why are sales continuing to stay hot when they would usually be cooling down? In part, it’s due to the trends we saw over the pandemic. Low housing inventory had been an ongoing issue for years, and 2020s uncertainty accelerated that, as many people delayed selling their home. Now, inventory is tighter than ever before. Adams County had just 228 active listings in November, and Boulder only had 151, down from 253 in October. In addition, in many areas along the Front Range, homes are selling faster than ever before. The average days on market around Colorado Springs is 11, and many areas around the Denver Metro are seeing a median days on market of only 5! 

 

Another interesting metric to note is months’ supply of inventory, which refers to the number of months it would take for the current inventory of homes to sell given the current marketplace. From up north in Weld County to down south in Colorado Springs, that number ranges from just 0.2 - 0.6. Using Colorado Springs as an example at 0.4, that means if no new homes came onto the market, the current inventory would be fully sold in about 12 days. 

 

In short, intense buyer demand seems to be continuing, most notably as interest rates begin to rise and people race to lock in current rates. According to Freddie Mac, the 30-year fixed rate mortgage averaged 3.10% the week of Thanksgiving, and the National Association of Realtors is forecasting that number will increase to 3.50% by mid 2022. All of these factors create perfect conditions to keep the real estate market hot this winter.

Monthly Market Snapshots

Monthly Market Snapshots

Denver-Metro---Nov-2021
Boulder-County---Nov-2021
Northern-Colorado---Nov-2021
Colorado-Springs---Nov-2021

An Innovative Solution for Buying

An Innovative Solution for Buying

If you or someone you know is looking to buy, this is a great time, even with the market staying unusually hot. Interest rates are still low, and home prices are leveling off. There are not as many active buyers as we saw during the frenzy earlier this year; however, there’s still a chance you could face competition for your dream home. So why not give yourself an advantage?

 

8z offers photo

Our Cash Offers program gives you a leg up on competing buyers by arming you with an all-cash offer. Not only does this give you the highest chance of success, people who use cash offers typically pay less for their homes; sellers are willing to accept a lower price in exchange for surety of funds, no financing contingencies and a faster close. If NAR’s predictions about interest rates are accurate, now may be your best shot at locking in your next home.

The Season of Giving

The Season of Giving

Today is Colorado Give Day! Last year $50 million was raised in 24 hours statewide to more than 3,000 local nonprofits, and they’re aiming to top that this year. As you may already know, 8z is a long-time supporter of Greenhouse Scholars as well as Salute Colorado. If you’d like to make a donation to these or other amazing, Colorado-based non-profits, please visit ColoradoGives.org!

 

Another wonderful cause that 8z supports is One Warm Coat. We’ve been gathering winter coats and other warm clothing at several of our offices to keep our neighbors warm this holiday season. The deadline to donate is December 31st, so if you have any old or unused winter clothing, please feel free to drop them off at any of the following offices.

A New Year's Tradition

A New Year's Tradition

Every year since the ‘Frozen Five’ made their first ascent in 1922, the AdAmAn Club has carried on the tradition of summiting Pikes Peak to launch fireworks at 14,116 feet. This is the Springs’ version of the Times Square ball drop - fireworks over the city’s most iconic landmark. Fortunately, you can get a good seat almost anywhere in town to bring in the new year with a hometown celebration. Don’t miss it!

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