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Metro Denver one of the most ‘vulnerable’ housing markets

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Denver — Metro Denver’s housing market has undergone major changes. He is currently one of the most vulnerable markets in the country, according to real estate broker Redfin.

Redfin risk scores are based on interest rates, home sales and price declines.

It may not be the best time to buy, but for many, it’s a better time than it was a few months ago.

“Oh, this is great,” said Shauna Morse, walking past the house in the Jefferson County market.

Recession fears and rising interest rates are contributing to market shifts, but most experts say whether you’re a buyer or a seller, take a deep breath.

Lori Abbey of Compass Real Estate’s The Abbey Collection said: “But they’re still up 10% from the same time last year.”

On the sell side, real estate experts like Abbey say they’re still about 1% overpriced if they’re priced right and don’t need to cut prices.

“We are still biased towards a seller’s market,” Abbey said.

Lori Abbey: Denver’s subway housing market is vulnerable amid recession, according to ‘The Sky Isn’t Falling’ report.your opinion

Buyers have also calmed down.

Mortgage broker Jimmy Everetts, owner of Everetts Lending, said, “Six months ago, buyers were looking at ‘better interest rates,’ while also looking at list prices of $25,000, $50,000, $100,000, or $100,000. I’ve seen houses that cost more than that,” he said. .

Markets appear to be in balance, says Everetts, and even interest rates, which surged a few weeks ago, are falling.

Everetts also believes buyers don’t need a lot of cash to close a deal.

“You don’t need $25,000, $50,000 in extra cash if you can accept the fact that you’re paying less than if the interest rate were 3%,” says Everetts. “I truly believe that today’s buyers are in a better position than they were in February.”

Metro Denver is currently one of the most “vulnerable” housing markets, according to a brokerage survey.

Redfin considers the Denver subway vulnerable. Because some homeowners who bought when prices were out of this world may end up with a lot of debt relative to their income levels and home equity when prices go back down to earth, and their housing This is because the owner may be forced to foreclose or sell at a loss.

Denver ranked 34th among the 98 cities surveyed with a score of 53.8, followed closely by Colorado Springs with a score of 53.7.

One of the risk factors investigated was the number of homes on the market that were priced down. Metro Denver has doubled the number of discounted homes compared to the same period in 2021.

But both Abby and Everett say the sky isn’t falling and homeowners should stay calm.

Of those who have purchased in the last two years, “I think in a few years it will be fine,” Abbey said. “They’re not upside down. We’re still a growing market, so few people are in a really bad position.”

“It’s definitely still a seller’s market,” Everetts said. “Buyers can’t pick their trash, but they have a lot more chances than we’ve seen in the last few years.”

Morse sells the old house and buys a new one. She feels it’s a smart time to do both.

“I feel great about where the market is now,” Morse said.

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