So, How’s the Market, April, 2018
First Quarter 2018 Real Estate Review
• The first quarter of 2018 for real estate in Denver, CO experienced a more normal market with signs of the frenzy slowing down. There are still bidding wars in lower price points, but for the most part prices have risen enough to where buyers are contemplating making an offer vs. rushing to an offer compared to a year ago.
• There are currently 4073 Active Single Family and Condominiums as of today. For the 1st QTR of 2017 compared to 1st QTR 2018 the total number of listings taken is 8.1% less today suggesting we are seeing sellers not willing to enter the market. We believe the sellers hesitancy is because they have locked in lower interest rates on their current home and/or may find the buying process to difficult to navigate.
• At the end of 1st QTR 2017 the Average Price was $409,402 vs. the end of 1st QTR 2018 the Average Price is $451,317 at 10.2% increase in one year. Median price went from $360,000 to $395,490or a 9.9% increase indicating there just are not many lower priced homes on the market today.
• The Days on the Market in 1st QTR 2017 was 31. Today it’s 29 or a 6.5% decrease in time on the market.
What Does Denver’s Future Hold for Real Estate?
• Appreciation to continue at a slower rate than 2017.
• Interest Rates will rise approximately 1% from current rates of 4 3/8% toward the end of the year causing housing inventory to increase.
• The opportunity to move up to your dream home could not be at a better time than NOW!
What Should Buyers Do in Today’s Market?
• Be Ready to Lock Your Interest Rate in During Your Contract to Closing Period.
• Give incentives for sellers to accept your offer in the terms you offer.
• Know the pricing of a neighborhood before getting into a bidding war.
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 quite caught up with the buyer willingness to pay. Have a strong strategy to get your home appraised before taking it off the market on the highest offer.
• It’s April, make your home front sparkle from the street to attract the most traffic.