TheDenver real estate market never really slowed down in the latter halfof 2021 (defying seasonal norms), then quickly picked up speed in 2022 and is on pace for another record breaking Spring selling season. Denver area home buyers are more determined and committed than ever and homes are going under contract at a feverish pace. Even with the uncertainty in the world right now, the Denver housing market remains strong. Let's take a look at what the numbers tell us.
Best Time to List All Year
The Denver market has become quite predictable in the last decade. We typically see most of our yearly appreciation in the spring months, specifically on properties that go under contract from February through April. This year is trending along with historic norms, but with exaggerated statistics. Here's why right now is the best time to list all year:
- Odds of Selling: the odds of going under contract or closing on your home within 30 days, continues to shatter all-time records. It currently sits at over 87 percent! Prior to the pandemic, the highest œodds of selling on record was 69.5 percent.
- Dependable Buyers: Historically, 15-17% of listings end up back on the market due to inspection issues, financing, or cold feet, but right now that number is just 5-7%.
- List to Sold Price: In every price bracket up to one million, three out of four homes are selling for over the asking price. And just 4% of homes needed to take a price reduction. It's still important to price your home right even in a seller's market, but if you do, you'll likely get what you're asking or more.
- Buyer Demand: There is more demand for homes than homes on the market and mortgage loan applications are up 9% week over week due to a slight dip in rates. Rates are expected to go up this year, however, which could thin out the buyer pool later in the year or put your home out of reach for buyers who can't secure a lower rate.
- Timing: By May, buyer fatigue starts to set in and buyers get distracted with summer vacations and activities. And by June, we usually see more listings hit the market which means your home stands out less.
Denver's Hottest ˜Hoods
With the lowest days on market, highest odds of selling, lowest months of inventory, and highest list-to-sale price ratio, these are Denver's hottest neighborhoods. If you're looking for a home in these areas, be prepared to come in with a VERY strong offer!
- Applewood
- Morrison
- Littleton
- Northglenn
- Lone Tree
- Highlands Ranch
*By contrast, Lodo has the most buyer opportunity with 2.6 months of inventory and a less urgent pace.
How Will Global Events Affect the Denver Housing Market
You're likely wondering how the situation in Ukraine could affect the Denver real estate market or your home's value. The good news is that during times of crisis, home values tend to stay strong or grow while other markets become more volatile. We are already seeing a spike in inflation and the cost of goods, specifically gas, natural gas, and food. The fed will have to adjust rates to combat this inflation which in turn will eventually affect mortgage rates. If you're currently house shopping, check with your lender about locking your rate sooner than later. Even if interest rates do increase and our market is less frenzied, we are likely to remain in a seller's market for the foreseeable future which means your Denver homewill continue to appreciate at a respectable rate.
Check back next month to see how hot things get in March which is typically one of our busiest months!
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