DENVER — Overall economic uncertainty and an increase in property taxes continued to impact Denver’s real estate market in April in a number of key factors, leading to fewer available homes for potential buyers as homeowners hold onto current mortgages with lower interest rates.
In April, however, Denver metro’s median home price rose by $14,000 to $580,000 from $566,000 in March.While the report showed a mixed-bag of statistics for buyers and sellers, Denver real estate experts highlighted the lack of inventory as a main force driving the spring housing market. And as the Feds are again set to raise interest rates by an expected quarter-point Wednesday in an ongoing, aggressive attempt to fight inflation, there is uncertainty how that move will play out in Denver’s overall real estate picture.
“Higher tax bills, coupled with increased interest rates are going to have a significant impact on buyers’ ability to purchas throughout the state, specifically the Denver metro area.”She noted the average residential property tax increase in the state was 33 percent with some areas seeing an increase as high as 60 percent.
“Buyers should be looking at adjustable rate mortgages that could be lower. Buy down opportunities - first-time home buyers – there are programs out there with lower rates,’ said Bailey.While not what many potential buyers probably want to hear, real estate experts in Denver continue to preach patience.