Denver Housing Market vs Florida Market

Why would I care about Denver Housing Market vs Florida Market? Well if you have seen any of the news about the Florida housing market you might understand way.

Look if you prefer watching a video on this then reading, scroll on down. I have got you covered.

So what is going on with the Florida Housing Market? Well in several of the areas in Florida that were hot and heavy in the past few years have now flipped to a serious buyers market. I have a client currently selling up here and moving to Florida. They said as they drove through neighborhoods sellers were coming out and asking them if they wanted to come in and take a look! Homes are sitting for over 6 months and big price reductions are happening.

Builders are leaving half built houses, well half built. Yep abandoned half built houses just sitting. It is a big switch! These are cute beach towns too.

Will the Denver Housing Market Follow the Florida Housing Market?

So as we see slow downs in the Denver metro area and beyond it begs the question. Many people have been waiting for a crash for years here in Colorado. Denver and throughout Colorado have certainly seen those stupid hot markets too, especially in 2020 to early 2022.

So here is what is actually happening in the Denver Market

We have a lot more inventory! This means buyers have a whole lot more homes to choose from. In Fact, they haven’t had this many options since 2013!

Our months of inventory has crept up to just below 3 months. This means if all the homes were to sell in Denver Metro it would take just below 3 months. This also means we are headed towards more of a balance market. Neither a sellers or buyers market. It is a market where negotiations still need to happen.

Despite a balancing market as of right now home prices have still increased. These increases are in the 1% or below range. Not 10% like it was in those crazy years. A average market is around 3-5% increase year over year.

Now there is market that is down turning and that is our condo. Townhome and attached home market. Prices have decreased there and these units are sitting a lot longer. This is due to insurance prices increasing and HOA fees rising.

Interest Rates Continue to Be a Factor

Interest rates are playing a crucial part in our market right now and what is happening. As interest rates continue to linger around the 7% mark the market remains in a holding pattern.

At the beginning of the year we saw interest rates drop below the 6.5% mark and the market heated up a little again.

Sellers got sick of waiting and stuck their homes on the market regardless. There just aren’t enough buyers out there to snap up the homes though.

Predictions are saying interest rates will continue to linger in the 6.75 to 7% range for the rest of the year.

So the Denver Housing Market vs Florida Market

It would appear as of now the Denver Housing Market is at a stale mate. Prices haven’t got to the stage of decreasing but we are definitely in a more balanced markets. If interest rates continue to remain stable or even rise it could see the Denver market following a similar path as buyers negotiate more. If interest rates lower, Denver very well could pick up and save itself once again.

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