Is The Denver Real Estate Market Starting to Cool Off?
- Average Price of a Single-Family Home Year over Year in June 2021 recorded an increase of price of 21.6% at $596,227. This growth is a result of coming out of the Pandemic in June 2020 and these are unsustainable gains in price. Prices will start leveling off as the buyers are making more cautious decisions in 2021 about their offers, and sellers are feeling the marketing effects of a smaller buyer pool.
- Inventory for June 2021 for both Single-Family Housing and Attached Housing is at 2,854 units compared to June of 2020 at 7,414 or a decrease of 61.5% year over year. Sellers have been reluctant to enter the market, and as buyers’ entry to the market is slowing down, those sellers listing their homes are finding the number of buyers looking at homes and making offers to be fewer than just 60 days ago.
- The number of single family homes and detached that were Pending in June of 2020 was 6,740 and in June 2021 decreased to 6,377. This represents that the buyer pool is getting smaller than previous months, but the June pandemic numbers may not be totally accurate until we see a three month decline in pending contracts.
- Days on the Market to Sell a Home is 15 today down from 29 one year ago. Still a very aggressive seller’s market, albeit it starting to level off in terms of price and numbers of offers.
How to Navigate a Changing Real Estate Market!
Depending upon whether you are buying or selling, you need to know how your price range is reacting to the new market trends, and what your odds are in specific periods of marketing or buying times.
With 2,854 homes on the market and predicting annualized closed units of 55,000 for 2021, the current supply and demand is at 19 days. These facts can tell buyers how to make offers and tell sellers how to price their home. Remember, improving your odds of competing for homes or selling your home is the most important aspect of navigating in a changing real estate market. Talk to your Denver 100 Real Estate Broker for strategies and ideas to best navigate today’s Denver real estate market.
What Should Buyers Do in Today’s Market?
- Know the trends of the neighborhood you are considering. Each neighborhood has its own unique characteristics. Know the data before buying.
- How long will you live in your next home? This is an important question in a low interest rate marketplace. If you plan on living in the home 5 years, you want to make sure there is still an upside of value and tax savings for you. If you are considering a shorter term in your home, consider an adjustable rate fixed for 5 years. If you plan on staying longer, consider a 15-year amortized loan.
- We are experiencing a market where you, as buyers have not had much negotiation power. Terms far outweigh price in most cases and consider what terms would suit your situation, regardless of the price you may be able to negotiate.
What Should Sellers do in Today’s Market?
- Be positioned as the best conditioned home. You will get top dollar this way.
- As sellers re-enter the market, now is the time to really know where to price your home. The best way to continue to attract buyers is by choosing a price position below other sales from the last 180 days. This will cause you to be in a high demand situation vs. sitting on the market with a price that may be too high in the eyes of the buyers.
- It’s July, make your exterior sparkle and trim the trees with our very wet spring season causing everything to grow beyond normal limits.
All data taken from REColorado on July 13, 2021 for the 8 county Denver Metro Area.