“On pace for another great year in Denver real estate”
Is a More Balanced Market Around the Corner?
- Average Price of both Single Family homes and Attached homes Year over Year in February has increased to $491,577 an 7.1% increase.
- Inventory for March 2017 increased by 3.4% year over year. When supply goes up prices go……. And the market may be leveling off as the number of new listings taken for single family homes in February was 3875, approximately the same as February 2016. Still a Sellers Dream Marketplace with low inventory.
- Days on the Market to Sell a Home decreased by 2.9% from February of 2016 to 33 days on the market. We are on a pace for another great year in Denver real estate albeit slower than 2016.
Can The Aggressive Sellers’ Market Continue through 2017?
Three Factors to Watch for the balance of 2017:
- Interest rates for mortgages remain are on the rise. The Federal Reserve, FNMA, NAR and most economist would suggest rates will rise slightly in 2017. This will hurt the buying power a little. However, we encourage buyers to buy now, as interest rates rise, your buyer power decreases and there is little chance of prices reducing at this time.
- Inventory will continue to be a historically low levels. This problem is compounded by several factors:
- Current Homeowners are enjoying their low interest rate payments and will not move.
- The lack of inventory keeps sellers off the market because they cannot find a home to move into.
- Incomes have not kept pace with home appreciation pricing some sellers out of the market for the short term.
- Employment growth and stability in the overall economy bodes well for Denver housing to continue at the same pace for at least 6-10 months. Sellers will have the upper hand in the price ranges with inventory levels below 2 months of supply.
Today’s market offers a very unique opportunity in that the price ranges of homes below $750,000, as these properties are rising in price rapidly and homes in selected suburban homes priced above $1.2 million are not rising at the same pace or at all. The buyer in the luxury market can really get a great value by purchasing in the next 90 to 180 days. This window will close as inventory in the luxury market continues to decrease.
What Should Buyers Do in Today’s Market?
- Be Ready To Buy! Homes below $750,000 are moving quickly.
- Know you will not have much room for negotiations during inspections. Understand the condition of your new purchase very well.
- Real estate is a very localized product to neighborhoods. Study the data from the area you want to live and compare the research for that neighborhood over time to understand the trends.
What Should Sellers do in Today’s Market?
- Be positioned as the best conditioned home. You will get top dollar this way.
- Appraisals haven’t yet caught up with the buyer willingness to pay higher than list prices. Have a strong strategy to get your home appraised before taking it off the market on the highest offer.
- It’s March, make your home front sparkle from the street to attract the most traffic as best you can.