The Denver housing market is still hot despite economic turmoil during COVID19

While economic turmoil is certainly taking place across the US, the housing market appears to be booming. People searching for homes are struggling with high prices, limited inventory and tough competition across the board. Many buyers have taken advantage of record low interest rates and in turn have rewarded those buyers that took a chance on listing their homes during such an uncertain time.

“Some analysts question if the housing market can maintain its momentum, given the expiration of enhanced federal unemployment benefits this month, a pullback in forbearance programs that forestall foreclosures, and a resurgence in COVID-19 infection rates that is forcing more business closures.

CoreLogic, which lists metro Denver among its overvalued markets, is predicting a 9% decline in home prices here a year out. Its reports also note that U.S. mortgage delinquencies, after 27 straight months of declines, spiked in April to their highest level since January 2016.”

To read more predictions about the Denver market find The Denver Post article here.

Drawbacks of forbearance

If you are currently struggling to pay your mortgage because of the effects of COVID19, know that you are not alone. Many are wondering how they are going to keep their homes during these trying times. This could be a time that loan forbearance comes into play. Under forbearance, your loan payments are postponed or reduced, but interest continues to accrue during the period of forbearance. If you don’t pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance. Forbearance does not affect your credit rating however the payment history or loan modification can limit your options for future financing for a period of time.  People should use Forbearance as a last resort.  If you are in a position where making your mortgage payments is difficult, contact your mortgage servicer right away to talk through options.

10 Signs You’re Ready to Sell Your Home

If selling your home is something you’re considering, Homebot can be an incredible resource for you! Not only will you receive monthly updates on your estimated home value, but it can help you understand the net worth of your home and how much you have paid so far (breaking it down into principal + interest.)

Homebot can still bring value to homeowners even if a move isn’t in your near future. It will show you how much a refinance will save you, help you to understand when you can drop mortgage insurance, looks at how much you could potentially earn by renting your home out on airbnb + more.

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