All data taken from REColorado on June 10, 2015 for the 8 county Denver Metro Area.
How Hot is Denver Real Estate?
- Average Price of both Single Family homes and Condominium homes Year over Year in May has increased to $374,890 a 12% increase.
- Inventory for May 2015 decreased by 17% year over year. When supply goes down prices go……. In fact, the number of new listings taken for single family homes was 5535 down 4% from a year ago. Fewer sellers are placing their homes on the market.
- The Average Sold Price of a Single Family home in May increased 4% in one month from April to $416,495.
- Days on the Market to Sell a Home decreased by 30% from May of 2014.
- The average price of a condominium is $262.657 an increase of 15% since last May.
- We are on a pace to sell 57,981 homes and condo’s in Denver for 2015. With 6235 total homes and condo’s on the market that is a 1.29 month supply of homes for the 8 county metro area. A 6 month supply would suggest an equal number of buyers and sellers.
Can The Aggressive Sellers’ Market Continue through 2015? Three Factors to Watch for the balance of 2015:
- Interest rates for mortgages remain at low levels. The Federal Reserve, FNMA, NAR and most economist would suggest rates will rise the balance of the year to upper approximately 4.75% to 5%. This will hurt the buying power of buyers to continue bidding wars on lower priced homes and will create more inventory. However, we encourage buyers to buy know, as interest rates rise, your buyer power decreases and there is no fact supporting prices to reduce 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 to, but we have answers for this dilemma.
- 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 4-6 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 $500,000, as these properties are rising in price rapidly and homes in selected suburban homes priced above $1 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 $500,000 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.
- Make your home front sparkle from the street to attract the most traffic as best you can.
Want to learn more, contact Tim at 303.669.2676