Data.
Some people like stories and pictures, othersenjoynumbers and charts. This is for all myanalyticalpeople out there!
Here are thenumbers, charts, and graphs you love.
If you are thinking about selling, there couldn't be a more ideal time to take advantage of your equity and move up. If you are waiting to buy, there are 8 charts provided below specifically designed to address your objections and help you create a winning strategy to buy in the Denver Market.
1: "I don't want to buy at the top of the market, I'm going to wait for it to cool down."
That is what they said last year! The image below shows the price increase in each county for attached listings (condos and townhouses). If you have delayed your search for a condo, you can expect to pay $47,000 more for the same property in Denverone year later! In Denver, the average price change for homes was $32,841. Platt Park and DU (Zip code 80210)experienced the greatest price increase. Values went up a whooping $83,924in one year!As long as people continue to move to Denver, the housing market will remain competitive. Unlike our last real estate boom, the current market is built on wealth not credit. The under $400,000 markets are anticipated to remain strong for the foreseeable future.
2:"I'm going to beat other buyers to the market by beginning the hunt for homes earlier in the year."
The market will remain in a state of compression January through Spring Break. Buyers will experience bidding wars at median to lower price points.Many Sellers will wait until the week following spring break to list their homes.Buyers are already out and searching for homes, under contract activity has increased significantly. I'manticipatingFall and Winter to be the leastcompetitivetime of the year for buyers in 2016.
3: "I want a deal. I've been searching on Zillow for homes and I see a lot of houses that are in pre-foreclosure, I want one of those."
Distressed homes currently make up1% of the market. There were atotal of 3 condo short sales in each February and March 2016. Buyers for distressed properties typically pay cash, making it very difficult for the average buyer who uses financing to compete for these deals.
#4: "I want to test the market. I don't want to bid over asking price, let's low ball them and see what we can get away with."
Multiple offers and bidding wars are at record levels due to the effects of market compression from February through April. These escalated values will continue to climb through the mid summer months.In March 2016 condos sold for 100.5% of list price and homes sold for 101.2% of list price. Expect to pay over list price.
#5:"I want to take my time, and I can only look at homes on weekends."
In December 2010, only 5.3% of properties properties sold in less than 7 days. In May 2015, 65.9% of properties in the Denver metro area sold in less than 7 days.Based on the last 3 years, we expect this number to accelerate through the spring, April is one of the fastest selling months in this real estate cycle.
As you can see, days on market has steadily decreased since 2010. First quarter last year being the quickest market Denver has ever seen.
#6. "Are you sure we are not in a bubble?"
With increasing prices, many consumers are nervous about a bubble. The active line in green displays the significant difference in units from where the bubble was formed versus current market conditions. Historically, similar number of homes have been bought and sold, but as you can see... we have no inventory (green line).
A big thank you to Megan Aller from Land Title for providing the best market insights for the people of Denver and their real estate agents!
If you are thinking about making a move, or want more information (or even more stats!)please don't hesitate tocontact me.
Socials