All data taken from REColorado on September 13, 2017 for the 8 county Denver Metro Area.
Inventory Still Low, Prices Still on the Rise!
•Listing Inventory is 3.25 lower today than 12 months ago. Normally we would see an increase of inventory as the housing market heads through the summer and a typical number is 6% growth in inventory from July to August
•The number of properties sold YTD is 2.7% greater than this time in 2016.
•The average price of a home in August of 2017 has increased 7% over August of 2016. This pace of appreciation is slowing down.
•Average Days on the Market is the same as one year ago of 23 days on the market creating a significant benefit to sellers entering the market. This stat is very price sensitive as $400,000 homes are moving significant faster than $1.5M dollar homes. Know your price range to better predict the time on the market.
•The number of homes under contract has decreased five months in a row down 3.9% from one year ago.
What Should Buyers Do in Today’s Market?
•Absolutely, Positively, be Pre-Approved for Purchasing. Do not change your financial position during the buying process as loan approval is really checked and re-checked right up to closing on your new home. In other words, do not quit your job or go out and buyer a big ticket item before closing.
•With the prediction of less appreciation in price over the next 2 years, try to gather enough money for 20% down payment if possible. This will reduce your payments as to eliminate the use of mortgage insurance and will insulate your purchase price in the event you choose to sell in the next 3 years.
•Consider pre-paying your principle or going to a 15-year mortgage. Creating a scenario of more equity will give you more flexibility down the road.
What Should Sellers do in Today’s Market?
•Condition, Condition, Condition. As prices have risen, the buyer pool is expecting upgrades and better conditioned homes for décor and mechanicals. Before entering the marketplace, improve the basic areas of kitchen, baths and service mechanicals of the home.
•Do not get overly aggressive with your price as the home will still need to appraise. It’s better to get a fair market value price quickly than try to wait on the market and negotiate to a lower target. This will reduce buyers to your home.
•Remove any barriers to sale, by getting pre-approved for you next home before you put your home on the market. The mental security in knowing you can purchase your next home, gives you a better negotiating position when selling.