Current Market Conditions
Takeaways from the most recent #dmarstats (pictured above) include:
Days on market has increased to 14 (meaning it is taking longer for homes to sell)
The average closed price has gone down by almost 1% (a distinct difference from the steep incline in prices we saw this past Spring)
Closed homes have declined by almost 9%
Inventory levels hit a low of just 3,376 active homes for sale at the end of October
Zillow exits the iBuying business
Interest rates are holding at near historic lows
What Does This Mean for You - Buyers and Investors?
We are experiencing the same seasonality we typically see in the Denver market each Fall. With homes sitting on the market a bit longer, prices holding steady, and rates remaining low, now is an opportune time to buy. In fact, it is predicted that we will return to a frenzied and highly competitive Seller's market this upcoming Spring where we will once again experience extreme bidding wars. With the threat of interest rates rising over the next year, what you can afford today versus what you can afford next year may be different. Not to mention, if prices go up as drastically next year as they did this year, you'll pay more money with a higher monthly payment for less house.
Takeaway: If you are serious about getting into a home and not selling your first born child to do so, NOW is the time to enter the market as a buyer or investor, not the Spring. Need some help getting started? Call me.
What Does This Mean for You - Sellers?
If you need to list and sell now, you certainly can. Demand is still strong and we are still in a Seller's market. However, it is critically important that you price the property correctly the first time or you will face longer times on market and potential price reductions.
If you can wait until March-April to list your home for sale, you will certainly be rewarded in the way of bidding wars and more competitive multiple offers. However, it will also be a harder time for you to secure a replacement home if you need one in Denver, so be sure to take that into account when making your plans.
Takeaway: Sell when you need to sell, but you'll make more on the sale in the Spring. Not sure how to best craft a plan for you and your family? Call me.
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