What are the projections for Littleton housing market and the National Housing prices, according to the experts? What’s going to happen? This seems to be the question of the hour that I get asked constantly. I’ve been in the industry for over 25 years and I’ve sold hundreds of homes, and I don’t think there has been a time of so much uncertainty so I can see how it can be scary. So, what is going to happen? Well, obviously I don’t have a crystal ball, but let’s look at what the real estate experts and advisors across the nation are forecast.
Only two of the major organizations are saying that we will decline. Seven of the nine are projecting house prices to go up, ranging from about 2.3% to 4.4%. I believe that the lack of inventory has a significant impact on the projections going up. Right now, we can’t bring Littleton homes to the market as fast as people are buying them. In Littleton Colorado, we are seeing prices increase substantially in certain areas, and the demand from buyers is substantial. This is also happening nationally, so let’s look at a quote from move.com. “Summer home buying season is off to a roaring start. As buyers flooded into the market, Realtor.com monthly traffic hit an all-time high of 86 million unique users in June 2020, breaking May’s record of 85 million unique users.”
I personally feel that low interest rates have a lot to do with buyer demand. The record low mortgage rates have converted some prospective buyers into active buyers. Many times, as economic downturns cause interest rates to go down, but as we see the economy recover, we should assume that the rates will go up. Remember, as interest rates go down, the buyer’s buying power goes up, meaning they’re able to afford and qualify for more in their payment, which does not go up. Also, if you look at the amount of home purchase applications that were taken out from buyers, according to the National Mortgage Bankers Association, we see that we have 11 straight weeks of year over year increase in applications for a loan to purchase a home from buyers. So, according to experts in analysts across the country, the projections are positive.
And for more information, just reach out to me anytime, I’m always here to talk. I’m David Novak with RE/MAX Professionals, and I hope you have a great day.
