Steady as she goes - the Denver Real Estate Market is maintaining course and producing expected numbers for this time of year with the under $500,000 segment of the market remaining the most competitive. While outside economic factors are starting to raise concern around the country, the housing market remains strong and continues to provide opportunity for consumers on both sides of real estate transactions.
Strength of the Denver Real Estate Market
What makes us so sure that the Denver Real Estate market is stable? For starters, Denver home prices have risen by 80% since 2007, which is the highest gain of any major metro area in the country according to ATTOM Data Solutions. The accelerated appreciation rates we've seen in the last several years have created wealth in the form of home equity for Denver homeowners. If you've been in your home for over two years, Megan Aller of First American Title tells us, you likely have an œequity cushion. Smarter lending practices over the last decade have also contributed to a more stable market with highly qualified buyers putting more money down on their home loans. Other factors that give us confidence in the Denver real estate market include a strong local job market and Denver's œcool factor that continues to drive population growth
This Autumn is a Great Time for House Hunting
If historic low interest rates aren't enough to tempt you into buying your next home, first home, or investment home, there are some other perks that you'll enjoy this time of year as a Denver home buyer. Last month we reported longer days on market and increased active inventory which are giving Denver buyers breathing room and options. This month our title reps are telling us that seller concessions are back, although the average concession is only around $1,000. We're also seeing a significant increase in price drops for homes that were priced at the top of the market, resulting in a ratio of 97.6% from original list price to sold price for single family homes. The biggest buyer opportunities in the market occur in two segments: condos priced between $750,000 and $1,000,000, and single family homes with an asking price of over $1,000,000. Buyers looking in these markets will have more negotiating power throughout the transaction.
Price it Right
Pricing is more important than ever! œFlash sales that go under contract in the first weekend are down to 33% for attached homes and 36% for detached homes, so sellers can expect more time on market before finding the right buyer. Properties that have to correct with price reductions end up taking an average of 58 days to go under contract as opposed to 13 days on market for properties that are priced right the first time. Your Denver real estate agent can help you price it in the sweet spot from the get go!
A Flutter of Market Activity?
The latest report from DMAR notes that mortgage purchase applications are up 9% from last year as interest rates remain at favorable lows. This increase in demand could re-invigorate the market before it slows again over the holidays. Check back next month when we report on October's numbers.
A special thank you to Jolynn Crownover for starring in our Denver July Market Report video.
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