SPOTLIGHT: Samantha Dawn is a

of the country, led by northeastern and western Colorado, The Denver Post reported. The u.S. home sales surged an unprecedented 24.7 percent in July. The median single-family home sale price in metro Denver rose 12.1% in August from a year earlier. In addition, the average sale price of a home in the Denver metropolitan area exceeded $600,000 for the first time in August.

One reason for these record numbers is that there are fewer properties on the market to buy and more buyers. Last August, for example, only half as many single-family homes were available for sale, compared with August 2019. During the pandemic, lower availability drove market prices higher.

Denver is booming as it is considered a destination for tech workers fleeing the pricey Bay Area and for metropolitan east Coasters looking for more expansive outdoor space. The new work-from-anywhere culture of the coronavirus pandemic is one of the top reasons Denver is experiencing its most competitive housing market in history.

According to local real estate agent, Jennifer Seo: “There are a number of factors that buyers consider when purchasing a home but during this pandemic, record low mortgage rates was definitely a factor that assisted buyers to pull the trigger if they were on the fence. And a lot of homeowners who lost their jobs were able to stay afloat and keep their homes with loan forbearance keeping the inventory tight.”

So many are wondering if this is a good time to buy a home due to the low interest mortgage rates?

Yes, historically low mortgage rates may be one of the strong motivations for homebuyers across the country. But in the Denver metropolitan area, rising home prices may have wiped out the benefits of low mortgage rates.

At Denver’s current rate of home price appreciation, the savings from lower interest rates have all but disappeared says Ali Wolf, chief economist at Meyers Research. Prospective buyers face a squeeze on affordability.

Seo with Colorado Realty Pros notes that her Asian clients are waiting. She says, “I can’t speak for the entire Asian

community but with my Asian clients, particularly those in the older generation, they are more conservative and holding off on purchasing and selling as there is a lot of uncertainty in the air.”

“Commercial loans have become harder to obtain, so plans to expand or to invest are also on hold. The older generations

Jennifer Seo, Broker Associate Colorado Realty Pros (303) 968-6489

are unphased by the low mortgage rates and more concerned with the bottom line,” she said.

Many are waiting until after the election and into 2021 to make any moves.