How Hot is Denver Real Estate?
- May 2017 inventory of single family and condo rose 1.9% from a year ago. Total Active listings today is reporting 4816 compared to 4728 12 months ago.
- Due to the lower inventory, the number of closed properties has decreased 5.6% from April 2016.
- The average price of a home in Denver today is $433,932 compared to $394,352 one year ago. An 10% increase.
- The Days on the Market has remained the same over one year ago and today stands at 21 days on the market.
How Does 2017 Compare with 2016 through April?
- The total number of sold properties in 2016 was 14,492 through April. In 2017 that number is 14,830 or a 538 property increase. However, both March and April of 2017 recorded fewer sales than March and April of 2016. Does this signify a buyer behavior pattern is starting to slow down their purchasing frenzy? Possibly, but watching this trend through the summer will most certainly give the prognosticators more data to predict the future.
- Average Prices continue to rise at 10% per year. Some neighborhoods have out-performed that number by a significant amount, specifically in the lower or entry level price points. As of today, there are only 41 single family homes for sale in the entire Denver market place below $250,000. Buyers are getting priced out of the market, which will slow buyer behavior down.
- The number of properties placed under contract in April 2017 is 5.1% more than April 2016. This would suggest we are still in a sellers market this spring and summer.
As buyer behavior buying patterns slow down, we will see inventory rise through the balance of 2017 and prices to level off. There is a sense in the market we are changing the market dynamics, but by all means, it remains favorable for sellers to sell their properties today at top dollar and for buyers to be able to enter the market and still see normal appreciation levels for the next several years.
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.
- It’s May, make your home front sparkle from the street to attract the most traffic as best you can.
*All above information was taken from the ReColorado Website.