Few homes for sale and buyers making multiple offers remains the story for our Denver metro real estate market. The good news is that the # of homes for sale is FINALLY increasing from the prior month! Here are the highlights:
# HOMES FOR SALE (INVENTORY) UP 9.5 % FROM LAST MONTH (6,746 Homes For Sale Currently)
# SOLD HOMES UP 7% FROM LAST MONTH
- WHAT’S TRENDING: Inventory continues to stay at record lows but we are thankfully seeing the uptick in inventory as expected for the spring selling season. Buyers are still feeling pinched with limited options and multiple offers well over list price common but appraisals are starting to loosen up. This is making it easier for buyers when offering over list price, Seller rent-backs are still becoming more common as many sellers are shying away from contingencies.
- WHAT DOES THIS MEAN: Whenever inventory is below 4-5 months it favors sellers. The longer inventory stays low the more it weighs in their 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 prudent strategy and is resulting in getting outbid by other buyers. 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 DROPS AGAIN….NOW ONLY 5 DAYS!
Despite inventory levels rising (as shown previously on this report) the time it takes to sell a home in the Denver Metro area is dropping…and is now only 5 days. The only reason it isn’t lower is because many sellers give a 3-4 day window for buyers to see the home and make an offer before selecting a “winner.”
- WHATS TRENDING: Median sold price is $314,600 & is up about 11.5% from January 2015 (only 4 months ago).
- WHAT DOES THIS MEAN: People keep asking me “is this a bubble. My response: until inventory gains over take the # of homes sold, no. And once this does happen…due to population growth projections and rising rental rates, the values will hold as demand stays steady for home purchases. We eventually will see a slow down in price increases but I highly doubt we will see a decline. Many industry experts feel similarly. The challenge this presents is mostly for appraisals. They are based on “HISTORIC” data while buyers are making offers based on present demand and inventory levels. Some homes are not appraising for what buyers are willing to pay.