For years now, we’ve all been feeling the pinch in the Denver housing market. Although some factors may be more out of our control than others, we’ve spotted some trends that may be keeping our housing market in its current state.  Lately experts are pointing to fewer approved mortgages, including in Colorado, and lower appraisals rates as deterrents of a better housing market and a complete turnaround.

LOW-APPRAISALS-AND-FEWER-APPROVED-MORTGAGESFor example, TIME magazine reported a staggering number that gives us possible insight into the slowly recovering housing market: one in every seven sales contracts failed in July 2011 because buyers could not secure a mortgage. That sums up to ten of thousands of people trying to buy a house, and they cannot get a loan. Some say the loan system is preventing those who cannot afford the home from buying as it should, yet the large spike in denials may suggest an overly cautious nature — from 4 percent denials in May 2011 to 16 percent in June 2011.

Low appraisal rates are stopping sales from completely following through as well. According to a recent Wall Street Journal front-page article, the lender might be pressuring appraisers to come up with low estimates.  Banks and financial institutions are less hesitant to use appraisers with less experience, says the WSJ article. It is important to be careful and prudent, especially when learning from the recent past, but experts are now wondering if people tend the err the other way. The key is to find a balanced approach for buyers, sellers, and lenders to foster a healthy housing market.

 Are you looking for the best way to approach our current housing market in Denver? Our years of expertise and empathy for our clients will help you have the best possible outcome. Call me at 888-860-1931 for tips on buying or selling your home.

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