Colorado is officially in the fall season with leaves changing and colder nights so naturally the question of what is going to happen to the Denver Real Estate Market as we head into fall is starting to come up. Since theDenver Real Estatemarket is often seasonal, I try to do my best to predict what will happen to the market as we head into each season based on my experience, what I hear from other agents and future expert predictions.
The past few years, we have seen an insane spring selling season, a slower summer season in July and August, and another rush in home sales in September through November before winter sets in. That is what weexpected this year and so far, we are still waiting for the fall rush to begin. For a number ofreasons, overpriced listings, buyers burned out and or enjoying the awesome weather this time of year, the number of buyers actively looking seems to have been cut in half. Many homes that in the spring would have seen 20 offers are barely getting 20 showings.
Given the low inventory and number of people moving to Denver, this won't last. If you are a buyer, I highly encourage you to act quickly to take advantage of this market before it revertsback to a seller's market again. I have been able to get two homes for buyers under contract this week for $20,000 below asking price and one of the homes was only on the market for 10 days. That's unheard of for Denver Real Estate in 2015 so I stress again, buyers, act now before this disappears!
Why am I so confident that the strong seller's market will return? It's simple, supply and demand. 80,000 people are expected to move to Denver county alone this year and we only have a 1.5 month supply of inventory, a quarter of the national average at 4.1 months. The Fed decided to keep interest rates low so they should stay in the low 4% range ensuring buyers have plenty of buying power to afford the rising pricesof homes. Speaking of rising home prices, the median sales price in Denver rose 14.2% over the past year, top in the country, and days on the market is the shortest at 23 compared to the national average of 59 days.
Last year we saw roughly 65,000 people move to Denver county. Alot of these people who initially rented are getting ready to start buying now to avoid the record high rental rates and many of the 80,000 moving here this year are thinking the same. That adds a whole lot of competition to the buying pool so factoring in the low rates, and all the positive attention Denver is getting, the Real Estate market isn't going to be slowing down anytime soon.
For this fall, I fully expect that we see another rush of home sales like we saw in the spring and that prices will continue to increase through the start of winter. So while now might not look like the best time to sell, I would still encourage sellers to list because this slow down won't last long. Just make sure that when you do list, you work with an agent who knows the market and can help you price your home correctly. Part of the slow down we are seeing now is because buyers are tired of looking at overpriced homes. Buyers are more educated than ever before and are only going to pay market value for your home. If you look at this graph, you will see just how important it is to price your home correctly from the start.
This fall and winter will be a great time to buy and sell in Denver. Dedicated buyers who follow a smart strategy should be able to get a great home before prices increase next spring as they likely will again and sellers can take advantage of already record prices and have a much better chance to find a replacement property without having to move twice, something that was so challenging in the spring. If you would like to talk about what your best options are, definitely let us know and we can sit down to figure out the best timing for you.
Mic Ortega
m. 303.903.3734
mic@liveurbandenver.com
www.micortega.com
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