WHO'S HAVING THE BEST YEAR IN REAL ESTATE?
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Want to know who just had the best month in real estate? Well, I'm going to tell you anyway. Buyers. Buyers are having the best month in real estate and it's not because it's a buyer's market, in fact, it's still very much a seller's market here in Denver Metro. But first, here's why buyers are having the best month in real estate. Negotiating power.
Buyers are negotiating everything from price, general contract terms, sales contingencies and inspection items. Particularly, buyers looking for condos between $750,000 to just under $1 million and buyers of single family homes priced over $1 million. We've seen an increase in inventory in both of these housing categories, both having slightly over six months of inventory, pushing them into more of a buyer's market. So, if you're looking for a home in these price points, you'll have more options and ultimately, more negotiating power.
Another indicator that buyers are having the best month ever, possibly since 2015, is in the year-to-date close-to-list price ratio, which fell just over 99% in September for all sales, after being consistently over 100% for the last four years. And to top it off, interest rates remain low, hovering in the mid to high three's, increasing buyers' purchasing power and enticing homeowners to leverage the equity in their current home to buy a second home or upgrade their lifestyle to a better home. You're probably wondering how can it still be a seller's market in Denver? Well, here's how. The average sale price in Denver Metro, went up by 6%. The sale of single family homes were just over 32% and condos sales were up by 120% from one year ago.
And yes, while inventory has increased by 25% to over 9,000 active listings at the end of September, that's just above the record low of approximately 7,500 in 2015 and still less than 50% of the September average of 16,500 and far below the record high of over 31,000 in 2006. There is still a huge buyer demand for homes in the $300,000 to just under $500,000 range and sellers in the $1 million plus luxury condo market are faring best of all with sales volumes up over 135% from last year.
So, what does this mean for you? Whether you're a buyer, a seller or both, it's important to have a hyperlocal viewpoint and understanding of the market. The numbers here, similar to what you might see referenced on social media or by local new organizations, come from the Denver Metro Real Estate Association, which includes stats from all 11 counties of the Denver Metro area, which is a lot. So, while these stats show what's happening on a large scale, what's happening in your city, your neighborhood, even your side of the street or within a particular building that you want to buy or sell, can be widely different than what's happening overall. Layer on factors like home type, price point and property features and benefits, and you have a much clearer picture of what the market looks like for you.
But, don't worry, you don't have to do all that. That's why I'm here, to be your real estate resource. Send me a message or give me a call at 303-585-0589 with your real estate questions or you can always go to my website at MilenaJoy.com where you can click on market trends reports and download the full detailed trends report every month. In the meantime, don't forget to follow me on Instagram @milenajoy Facebook at Milena Joy Real Estate. I look forward to hearing from you. I'm your realtor, Milena Joy. I know changing where you live, can change how you live.
