About this time every year, I pick up a copy of 5280 The Magazine to check out their Denver Real Estate guide. It typically provides pretty good insight into the state of the market in Denver at the time and highlights some of the hottest areas. And while it isn't always the most accurate source, I know lots and lots of buyers and sellers read it and rely on it when doing their shopping so I think it is a very important Real Estate guide to pay attention to.
I won't copy the entire article here, but I will point out some of the highlights that I think are important. To read the entire guide, click here. The first thing I always look at is which neighborhoods they picked for their top hoods. This year we have Wash Park East, South Park Hill, City Park, Platt Park North, Sunnyside East, Highland Central, Congress Park South, Stapleton, Capitol Hill and Cherry Creek. Many of these aren't a surprise and are on the list every year. Sunnsyide East and Capitol Hill are a bit of a surprise though since I haven't seen those listed in years past. Capitol Hill has seen a price increase of 36% which is a huge number and should be the first part of town people looking for entry level condos should search.
What really surprised me though is that they don't have Wheat Ridge on the list. I believe Wheat Ridge is the hottest neighborhood in Denver right now. The past two houses I made offers on there both received over 30 offers and sold for over $35,000 above asking price. While our office is all about Wheat Ridge right now, this might be a good indication that the rest of the city hasn't quite caught on yet and it may be a good opportunity to get into Wheat Ridge before it does.
Outside of hot neighborhoods, I believe the guide does a good job of summarizing the market. It is a very strong seller's market, but it is also a smart market. You can't just put your house on the market and expect to receive a ridiculous offer. The home needs to be in good shape and small updates can go a very long way. An experienced agent who focuses on the neighbor you are selling in can be invaluable in pointing out which improvements are needed and which are not and can easily result in a price increase of $50,000 or more.
Another good point they make is about linked transactions. We are starting to see more homes come on the market because seller's are realizing how good the market is and feeling more comfortable they can find a replacement home. As a result, we are seeing a lot more linked transactions where a seller will close on their home in the morning and buy another in the afternoon. This can be a very tricky and complicated experience and another very important reason that the agent representing you has experience with these types of transactions. The last thing you want is to be homeless and have all your belongings out on the street.
This is a very exciting time for Denver Real Estate and I don't see the market slowing down anytime soon. It is no longer about trying to get a steal on a house, it is more about just getting into the market and letting the market work for you. If you are curious as to what your options might be and what these neighborhoods have to offer you, please let us know.
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