The Denver Metro Association of Realtors' Market Trends report for March is out. Here is a quick overview of what February real estate looked like in the 11 county metro area.
The average price of a single family home was $512,312. This is an increase of 2.72% from January, and .36% higher than in February 2018.
Denver is the most competitive housing market in the nation, according to Forbes. While supply was higher this February than it was in 2018, so is the amount of homes going under contract. This indicates that the number of Buyers has gone up as well. Depending on the price range of your home, it is likely that there are fewer homes for sale than there are Buyers in the market ready to purchase a home. Days on market also went down from January to February, a huge 162.50% from 42 days to 29 days on average.
We have experience this yearly housing cycle for the last several years and this typically means prices are expected to continue to rise through June. By July, inventory will reach the highest amounts available for the year as many Sellers wait until summer to put their homes on the market...just as Buyers decide they need a break from the exhaustive search. We typically start seeing homes sit on the market longer and price drops in the late summer/early fall.
The BEST time to list your home is March, April and May.
One increase in activity that we don't like to see are the "back on market" status changes. This is typically due to a sense of buyer's remorse.
Denver is a major city for millennial migration and this large generation is finally in a position to buy a home! To attract these Buyers, and keep them under contract through Closing, you will want to make sure your home appeals to them. They do still have more choices that they have had in years and are getting a bit pickier.
Sellers often don't realize that the next person that purchases their home may be 20+ years younger than they are and how important it is to stage your home to "feel like home" for Buyers with a different tastes in style. This is where staging becomes important in selling your home as fast as possible and for the most money. Repairs, staging, professional photos and marketing are extremely important!
Read my article The 5 Mistakes Home Owners Make When Staging Their Home For Sale. Contact me if you would like to be connected with a staging professional to learn what to address within your home for the highest return on investment. Learn more about what it is like to work with me as a Seller in this short video.
So far, 2019 is a great time for Buyers in the Denver market as there are 47.33% more listings to choose from in February 2019 than there were in 2018 and interest rates, which were predicted to go above 5% actually hit a one-year low in February and are in the lower 4% range. However, since more single family homes went under contract in February than came on the market, the inventory surplus looks to be going back down as we enter the spring market.
There may be competition in the lower price ranges, but greater inventory makes it much less competitive than in years past. Prices will continue to rise this spring, so if you wait to buy in the fall when there is typically more inventory, you will have less competition but pay more for your home.
Worried about competing with other Buyers over the same house? Find out what NOT to do in my article 3 Reasons Your Real Estate Offer was Rejected. Learn more about what it is like to work with me as a Buyer in this short video.
The decline in mortgage rates combined with a strong job market and low unemployment continue to push the demand for housing. Mortgage purchase applications are up 3% year over year.
In most price ranges, we are still in what is considered a Sellers Market since we have 2.07 months of inventory available (1.92 months when looking at single family homes). Detached homes priced over $1 million are in a Buyer's Market, since there is 6.58 months of inventory and higher-priced condos (over $750,000) are also in a Buyer's Market.
Now is a great time for both Buyers and Sellers. Sellers are still enjoying the equity gains they have made in the last several years and Buyers more choices have the opportunity to buy at a low interest rate before 2019's two projected interest rate increases. The prediction for the Denver metro area market from the National Association of REALTORS® is that it will be another hot early spring and then the market will begin to stabilize in 2019. I know we all wish we had a crystal ball to know if that is what will actually happen!
Reach out if you are considering Buying or Selling a home and we can talk about what I do to help my clients succeed. I will always be honest with you about the market and what needs to be done to help you reach your real estate goals!
No matter who you hire to help you buy or sell a home, be sure you are asking them the right questions, check out my video 15 Questions to Ask When Interviewing A Real Estate Agent.