LONGMONT – A mortgage trend that’s likely to continue throughout 2016 is low levels of inventory across the Front Range of Colorado.
The January 2016 Boulder Area Realtor Association Monthly Indicators Report shows several measures of low inventory with year-over-year comparisons. Particularly interesting is the exaggeration in low inventory shown in the report for townhouses and condos.
New listings decreased by 19 percent, and the total market had 255 new listings in January. Active listings decreased by nearly the same amount, 18 percent. For condos and townhomes, these numbers were far higher. New listings decreased by 37 percent, with 58 listings in January, and active listings decreased by 43 percent.
Because of the low inventory, some buyers decide to wait it out to see if they can find a home in their price range and in the area they desire. They’re willing (and able) to spend what will likely be more time and money buying a house in their dream location.
Others look outside their desired area to find their home. For these homebuyers, the downsides of living outside of their desired area (like having a longer commute) outweigh the implications of low inventory (higher costs and a longer home search).
If you’re looking for a new home, consider whether your priorities align with finding a home in your desired location or with expanding your search to outlying areas.
For more on this subject, visit the Elevations Blog at elevationscu.com/mortgagetrends.
Sabrina Lee is a Mortgage Loan Originator at Elevations Credit Union in Longmont. If you have questions regarding mortgages, please call 720.652.7115 or e-mail [email protected].