As we look back at the 2015 mortgage market in Colorado’s Front Range, three trends are likely to continue this year. If you’re interesting in purchasing a home, keep these big-picture items in mind.
1. High demand: We continue to see demand in all different sectors of the mortgage market, from first-time homebuyers to move-up buyers and investors. Days on the market decreased significantly across the state by 25% in 2015 (find more numbers behind these trends in the Colorado Association of Realtor’s Housing Report). This demand doesn’t appear to be slowing down.
If you’re looking to buy, be aware of the competitive nature of the market and set you expectations accordingly. Getting pre-approved for a mortgage is a great first step to accelerating your home-buying process.
2. Low inventory: While each community we serve has a different level of inventory, we’re generally seeing low levels of inventory across the Front Range. The City of Boulder, in particular, is very tight with inventory. Some buyers are deciding to wait it out to see if they can find a home in their price range, while others who experience buyer fatigue are looking outside the area to find their home.
Consider whether expanding your search to outlying areas might be the right fit for you.
3. Builders own the market: Because of the lack of inventory, builders are not able to create new houses fast enough. In Boulder, there’s limited new construction. But in outlying areas, builders don’t have enough resources to meet the demand.