The Denver Metro Association of Realtors' Market Trends report for May is out. Here is a quick overview of what April real estate looked like in the 11 county metro area.
The average price of a single family home was a RECORD $553,371. This is an increase of 4.55% from March, and 1.51% higher than in April 2018.
The median number of days on the market in 2019 before sellers are under contract is 12, meaning it is taking twice as long this year to get under contract in 2019 as it did in 2018 when that number was 6 days. However, that is still only two weekends of showings and less than two weeks overall on average, which is still incredible for Sellers!
Although listings are up 35.89% right now compared to this time in 2018, we are in a Seller's Market at every single price range. There is 1.50 months of single family homes and 1.49 months of attached homes available in the home inventory. It would take between 5 and 6 months of homes available before we consider the market balanced between Sellers and Buyers. While 21.28% more homes came to the market in April than were available in March, 18.76% more homes also went under contracts as eager Buyers enjoyed more inventory to choose from.
Prices for both single family homes and condos continue to appreciate, with the average single family home price for March at $553,371 and condos at $368,565.
The close-to-list price ratio is at 99.24% year to date and it is even more important with rising inventory and longer days on market that you price your home appropriately at the beginning.
With more options to choose from, Buyers are more discerning and looking for clean, turn-key properties. Sellers need to be prepared that their home may not go under contract the first weekend and make arrangements so that the home is in show-ready condition and available to be seen by Buyers for a longer period of time.
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.
Buyers are loving more inventory to choose from and the ability, in certain price points, to not compete with multiple offers. Mortgage rates are also still lower than a year ago and appreciation in home values continues to increase, it has slowed a bit from what we have become use to over the past several years. On top of that, the percentage of transactions that involved Seller Concessions in the 1st Quarter was at 58%. Seller Concessions may be offered in instances where the Buyer asks for them as part of the offer to help with their Closing Costs or may be negotiated after under contract if the Seller and Buyer agree that a Seller Concession is appropriate in lieu of repairs requested after Inspection is complete. All of this is great news for Buyers!
As mentioned above, even with the increased inventory we are still in a Seller's Market at all price points. Buyers should not be out looking at properties until they have a completed pre-approval and are in a position to make an offer on a home. While competing against less Buyers on many properties, they may find themselves in multiple offer situations for certain desirable homes in our market, especially in the lower price-points.
Great local lenders and agents who can write well-written, professional offers are key in our market. Being able to have a smooth transaction and close faster than 30 days has helped my clients win in multiple offer situations.
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.
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.