America the Beautiful remains a beacon for residential home buyers and sellers. Domestic interest rate measures continue to break inflation’s back as commerce shifts into the “4th industrial” revolution. While harder for the first time home buyer, traditional reasons to own or sell a home are front and center. Speculative tendencies have been curbed by policy shifts for over a year. Cash buyers have been king nationally making deals happen for willing and ready sellers. Paired with productivity increases, the domestic economy is prepared to handle the political winds of change before us.
Supply constraints remain the residential factor:
Homes remain under-supplied not for lack of demand but because of both labor shortages and interest rate impacts. Rates are at historically normal levels. Yet the buyer expectations have had to shift greatly. For the new first-time home buyer, owning because it is a place to build a foundation should take precedence over the investment and tax advantages of owning real estate. The tight supply in Denver’s real estate market remains behind demand.
30 Year Rate Graph (2022-2024)
The typical sale takes 50-70 days depending on the specific metropolitan neighborhood. Sellers overpricing today are met with crickets, especially when the home is not updated. Sellers should also realize that the multifamily supply in places like RINO & The Golden Triangle adds capacity. This fact will keep the Denver buyer focused on short-term rental options when the targeted home is not updated. Once the Federal Reserve undertakes a substantial “first” rate cut, most expect homes to increase in price, especially with the continued home supply shortage.
Likely Cut:
At MASONmodern, rate changes are a 4th / 1st Quarter likelihood. While the gymnastics called the Presidential election unfolds, international uncertainty remains higher than what a corporate-focused American political system offers the foreign investor. For those worried about American revolutionaries showing up in their neighborhood, set your home security system up with redundancy, Krav Magra classes, and diversifying into crypto. America remains a great place to call home for the rest of us, especially when the Federal Reserve remains independent from the political motivation preached on national media.
