Denver Real Estate Market on Fire, Breaking Records Amid the Pandemic
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Would you pay $750,000 for this home? Never mind. In the time it just took you to think about that, this home already has 30 showings, 15 offers, and is under contract at $50,000 over asking, with no inspection and an appraisal waiver.
Hi, I'm your Realtor Milena Joy. While that home is not actually for sale in Denver, the story made up around it is very much a reality for what's happening in the Denver metro real estate market. Buyer demand continues to be high, as interest rates have hit historic lows, inventory is at an all-time low, and the medium price point for both single family homes and condos are at a record high. It continues to be a hot seller's market, even amid the pandemic, and in some ways, because of it.
Here's what's happening. With more people working from home and many kids still homeschooling, buyers, including those from feeder markets like Chicago, Dallas, New York and Seattle, are seeking larger homes with dedicated home offices and more outdoor space. These out-of-state buyers are coming in, many of them with cash, and scooping up inventory as our rising prices still pale in comparison to the markets they're leaving. The allure of the Colorado outdoor lifestyle, our ranking as the number two best place to live, many of our counties reigning among the healthiest, and DIA being ranked among the top international airport hubs, we continue to attract businesses and buyers across the country, and around the world.
So here's what you need to know if you're looking to sell or buy in this competitive market. Sellers, while it certainly is a seller's market, overpricing your home in this market can be detrimental. Even though home prices continue to trend up, buyers can't help but wonder if they're buying at the peak. So when a home appears to be even slightly overpriced, it ends up sitting on the market. And with 21 being the average days on market, you can see how quickly days on market can create a negative stigma, resulting in a downward spiral of price reductions and lowball offers. It's important that the price conveys value and attracts the largest pool of qualified buyers.
My affiliation with Sotheby's International Realty also means that my listings get exposed to national and international buyers, which is extremely important as more people continue to move to Colorado. More exposure means more buyers, more offers, more competition, and ultimately higher prices and better terms for the seller. Move-in ready homes are also in high demand. With so many people renovating their homes during the pandemic, contractors are booked out for months, making homes that need little or no repair, or updating, more appealing. I put a lot of time into helping sellers prepare your home for sale, to ensure it shows its best, both online and in person.
Now buyers, while increasing home prices aren't in your favor, the drop in interest rate has helped offset the annual appreciation of a home, which equates to more purchasing power. In fact, the payment on the average priced home for a 30 year fixed loan with 10% down, is up just 4% for detached homes, and is actually down 0.4% for attached homes. So if you're someone who needs to sell and buy, now would be the right time to do it, so you can maximize your sales price, and buy at a low interest rate.
Timing is everything for buyers. Working with an agent that's available to show you homes as soon as they pop up on the market is crucial. Don't wait until Sunday to see a home that's listed on Thursday. Sometimes just being the first offer in can give you an advantage, because that offer sits in front of the sellers, so they become more comfortable with it. It can also potentially scare off other buyers that did not want to get into a bidding war. Writing a competitive offer goes beyond price, it means being prepared, knowing my buyers can offer in terms of dates and deadlines, earnest money and inspection, and appraisal terms, allows me to act quickly to turn around an offer that creatively packages those terms into a winning offer.
This is just a snapshot of what's happening in the Denver metro real estate market. If you want more detail on what the current market means for you, give me a call at 303-585-0589, or go to my website at milenajoy.com. I would love to sit down with you and give you a clear understanding of your real estate options in 2020.
I want to be your real estate resource. In the meantime, please follow me on Instagram at @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.
