Denver Real Estate: Where is the Real Estate Market Heading?
Denver’s real estate market is experiencing record-low home inventory resulting from not enough home sellers but plenty of interested home buyers. Real estate predictions about where is the real estate market heading in Denver are filled with words like astronomical home inflation, price appreciation, un-supported home values, and so on.
Here are refreshing thoughts and a practical outlook on the Denver real estate market from Sam Wilson, Realtor. Sam is confident that there are plenty of homes for sale—the issue is that inexperienced realtors don’t know how or where to find them.
Sam Wilson Takes a New Approach To Real Estate
Common beliefs have home buyers believing that finding homes for sale in Denver is challenging. Finding a house to buy is easier than you think when you work with a knowledgeable realtor like Sam Wilson who is an expert real estate negotiator.
- Most homebuyers believe that the MLS and national listing websites are the only way of finding homes for sale in Denver
- Many traditional realtors don’t know how to find homes for sale for interested home buyers that are not listed on the internet
- Some real estate agents lack the confidence to go the extra mile to take a new approach to real estate that can identify homes for sale
If you are a serious home buyer frustrated about not finding the right home to buy, contact Sam Wilson at 303-770-1250 to talk about the extra steps Sam takes to help homebuyers and home sellers
In addition to knowing how to find homes for sale not listed on the internet, Sam Wilson contacts homeowners with homes listed for sale by the owner, homes previously for sale that failed to sell, and builders of homes not yet released to the public. Most realtors won’t take these extra steps because they’re stuck in the mentality of only writing real estate contracts on homes listed for sale in the MLS (multiple listing service).
One answer to where is the real estate market heading in Denver is to a new approach working with real estate buyers and sellers by the Sam Wilson Home Selling Team.
Denver’s Real Estate Market Update
Let’s look at real estate market statistics from the Denver 2020 Market Trends Report from the Denver Metro Association of REALTORS® for the month ending November 30, 2020.
The statistics below include the Denver Metro real estate market’s eleven counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Park, and Jefferson County, Colorado.
- Closed homes, meaning homes sold numbered 4820. This number is +11.91% versus November 2019. More homes are selling year over year, which is a positive trend.
- The number of active listings at November month-end was 3,415, which is down 51.13% versus a year ago and 29.16% versus October.
- Homes listed are selling.
What Do These Trends Mean for Serious Home Buyers?
For home buyers and sellers in the Denver real estate market, these trends mean that now is the time to get the best deals before home prices continue to rise in 2021.
The math is simple.
- Interest rates are at an all-time low, making mortgage payments more affordable today.
- Housing prices expected to increase between 3-6% in the spring will move homes into the next pricing category. For example, a home today priced at $599,000 may appreciate in price to $616,000, which may be out of the affordability range of previously qualified home buyers.
- Even if mortgage rates stay low, home buyers will get less for their money than they will in today’s real estate market.
The average price for a detached home in November 2019 was $533,107. In November 2020, the average price was $619,766—great for home sellers. However, continued home price appreciation will stretch home affordability even if interest rates remain low.
Where is the Real Estate Market Heading for Home Sellers?
Homebuyers are SERIOUS, while home sellers may be hesitant to move during the ongoing pandemic unless they really need to sell.
The unanswered questions are:
- Would homeowners sell if selling was easy?
- Are homeowners avoiding the perceived hassle of listing, showing, and completing home inspections with the complications presented by COVID?
The reality is that selling homes is easier for realtors who embrace technology.
- Zoom calls and online video conference calls minimize the time of in-person meetings.
- Homebuyers and sellers can sign real estate contracts and documents online.
- Many realtors go the extra step to create videos and photo reels to show off homes for sale.
- Serious buyers can preview homes online before showing up on a home sellers’ doorstep.
The use of technology means that homes are selling fast. The average days on the market for a home listed on the MLS is 22 days, which is lower by 8.3% versus October and 37.14% lower than a year ago. These statistics benefit serious home sellers and homebuyers who want to downsize or upsize their homes.
The Perceived Winter and Holiday Lull is the Time to Buy and Sell Denver Real Estate
Real estate price increases continued in November, with the average home sale price increasing 13% vs. November 2019—but down 2% vs. October 2020. This means that there may be fewer buyers bidding up home prices this month and next, making it easy for serious home buyers to get the home they want.
December, January, and February are the best months to list and sell a home to be ahead of potential mortgage interest rate increases or a change in the 1031 Exchange rules. If you want to sell your home and get the most money, now is the time.
Be Cautions of Home Buyer Bidding Wars
Home sellers should be cautious of buyers bidding up the price of a home. While this may seem like a positive factor, it’s crucial to weigh ALL factors that contribute to the best possible chance to close.
In Denver’s competitive real estate market, home buyers are over-bidding to tie up homes and then back out of deals 30 to 60 days into the closing process. This delay results in homeowner disappointment over losing home buyers who were more financially qualified and likely to close— but at a slightly lower but still fair price.
Where is the Denver Real Estate Market Heading?
- The Denver real estate market will remain competitive for affordable price points.
- Home sale prices are expected to continue to increase at 3-5% in 2021
- It is unknown whether mortgage rates will remain stable or rise
- The 1031 Exchange that allows real estate investors and home sellers who buy their next home to avoid capital gains is on the legislative table again for review.
- Unknowns exist whether job losses related to the pandemic will result in Denver becoming a hot short sale or foreclosure market for home buyers.
- If you are a homeowner struggling with making a mortgage payment, contact Sam Wilson to discuss how to get the equity out of your home and avoid the Colorado short sale or Colorado foreclosure market.
For More Helpful Real Estate Tips, Articles, and Information Visit Sam Wilson’s Real Estate Blog
Thinking about Buying or Selling a Home?
Are you thinking about buying a home in Lakewood Colorado, or the Denver Metro Area? Get expert real estate advice when house hunting for homes for sale in Lakewood CO, Jefferson County, and the Denver metro area. Work with a buyer’s agent on the Sam Wilson Home Selling Team. If you are thinking of buying or selling a home, we make you a priority and share our expertise to make the home buying or selling process as stress-free as possible.
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The Sam Wilson Home Selling Team specializes in homes in Lakewood CO, and Jefferson County Colorado, including Arvada, Aspen Park, Conifer, Edgewater, Evergreen, Genesee, Golden, Idledale, Indian Hills, Ken Caryl, Kittredge, Lakeside, Lakewood, Littleton, Morrison, Mountain View, West Pleasant View, and Wheat Ridge.
© 2020 Sam Wilson All Rights Reserved. All Articles by Pamela D. Wilson MS, BS/BA