The market is coming into full swing for spring..with a few twists. Here’s what you need to know:
The time it takes to sell a home has plummeted to a staggering 5 days!! This is the MEAN folks….not the average….which would be even lower! Wowza! How does this impact buyers and sellers…keep reading….
# Homes For Sale Keeps Dropping & More Homes Are Selling: You can see below in the charts, the # of homes for sale is down 20% from last year BUT the # of homes sold remains the same as a year ago. So…demand is continuing to grow even bigger than the home supply. The big question….will it keep pushing prices up? Many industry experts (me included) believe YES….prices will keep pushing upwards this year until supply increases and we reach a more “normal” market.
Buyers Have To Act Fast! For home buyers, in the words of corny car salesmen, the home that buyers saw yesterday is likely going to be sold today….seriously! Another great option is to purchase new construction. I will be holding a workshop on this as well because buying a new home is a whole different animal! Stay tuned!
Sellers Have To Plan Ahead: While selling so quickly sounds like a good problem for sellers….it does present the challenge of “where do we go now”. I am going to be putting on a workshop on this very topic to discuss this chicken and the egg dilemma….”How to buy a home in the Denver real estate market (and not be homeless) when you have to sell your home first). Stay tuned! Best case, you can qualify without selling your current home.. If not, there are some strategies I can share to help ensure you don’t go homeless and can still find the new home of your dreams. It’s definitely not a market you need an experienced agent on your side.
# HOMES FOR SALE (INVENTORY) DOWN 4.8% FROM LAST MONTH, 19% FROM LAST YEAR (5,962 Homes For Sale Currently)
# SOLD HOMES THIS MARCH ALMOST THE SAME AS MARCH 2015, BUT UP 33% FROM LAST MONTH! (4,584 homes sold in Mar 2016)
- WHAT DOES THIS MEAN: Whenever inventory is below 4-5 months it favors sellers. Right now we have about 1.6 months of inventory. The longer inventory stays low the more it weighs in the seller’s favor. Buyers need to act quickly when they find a home they like and make an aggressive offer. Coming in way under list price expecting a counter is not a smart strategy often results in getting outbid. Sellers need to have a strong pricing & marketing strategy to get the MAXIMUM price & buyer interest immediately when coming on the market. Even more importantly, your listing agent needs to help you work with the appraiser to try and get an appraisal that supports what a buyer is willing to pay. Appraisers are still going on historical data and have a tough time accounting for the premiums buyers are willing to pay in the low-inventory market.
MEDIAN DAYS ON MARKET IS ONLY 5 DAYS….SAME AS LAST YEAR BUT DOWN HUGE SINCE JANUARY