Selling and Buying in a Sellers Market in Denver Colorado
Thoughts of selling and buying in a sellers market in Denver Colorado may have you puzzled about what to do next. As a home seller, you may be waiting for the real estate selling season. Denver real estate trends point to an ongoing selling season that began in 2020 and continues into 2021.
The best time to sell your home is when you want to sell. However, if you are selling and buying a replacement home, waiting to sell may reap higher profits but cost you more for your next home due to increases in housing prices in the Denver metro area.
The best advice for selling and buying in a sellers market is—don’t delay and be prepared to act quickly. More real estate tips from Lakewood Colorado realtor Sam Wilson about selling and buying in a sellers market in Denver Colorado are below.
Denver Colorado Real Estate Market Facts
Let’s look at January 2021 numbers for real estate sales in Denver, Colorado, and sales by price bracket. According to the Denver Metro Association of Realtors January 2021 Report (read the DMAR report here):
- The number of residential homes listed for sale as of January 31 was 2316, a decrease of 8.85% versus December 2020
- 3015 homes closed during January 2021 vs 2261 in January 2020, or a 10% decrease
The median days on the market in the MLS (multiple listing service) is 6—with the average days on the market at 27. This means that more well marketed and prepared homes are selling in a matter of days if priced well. Homes that may be overpriced, have unusual floor plans, or need repairs may take slightly longer to sell but are still selling fast—within a month on average.
What is the average home sales price in the Denver metro area?
- The average closed price in the Denver metro area is $550,425, an increase of 1.57% versus December and +15.71% versus a year ago.
Statistics for homes sales for properties valued $300,000 to $499,999
Residential homes in the affordable price range (called the classic market) of $300,000 to 499,999 are selling rapidly, with median days on the market of 5. The good news is that new listings were +32% versus the prior month, with a total of 1,888 new listings coming on the market versus 1431 the preceding month. This means that homes coming for sale on the market on Thursday receive multiple offers throughout the weekend and are under contract by Monday of the following week.
Homes sales for properties valued $500,000 to $749,999
Residential homes in this value range are selling with median days on the market of 5. New listings were + 39% versus the prior month at 1129 versus 811. This brisk selling pace means that home sellers should be shopping for their next home at the same time they place their home on the market.
Homes sales for properties valued $750,000 and $999,999
Residential home listing in this price range increased by 72% versus the prior month, with listings in January 2021 of 316 versus 190. The median days on the market for homes in this price range is 14.
Home sales for properties values over $1 Million
Hones in this price range saw the most significant increase versus the prior month of 79.5%. In January 2021, new listings were 289 versus 161 in the preceding month. Homes coming on the market are selling as fast as they are listing. In January, 289 luxury residential homes went on the market, and 294 of these homes were under contract by month’s end.
Tips for Selling and Buying in a Sellers Market in Denver Colorado
Be prepared to move. Outdated or as-is houses are going under contract within a month’s time—sometimes sooner.
As evidenced by MLS median sales days, homes are selling fast, including outdated or as-is homes. The average days of 27 in the MLS confirms that demand for all Denver area homes is high—even homes that may not be in perfect condition.
These trends mean that home sellers and buyers should be prepared to move quickly by:
- Responding to offers and counteroffers within 24 hours or sooner if possible with the advice of an experienced realtor
- Preparing to move quickly by having a property rented or under contract, or requesting an accommodation for a rent back when negotiating a real estate deal
Make sure that you work with an experienced and knowledgeable realtor who has excellent negotiating and sales skills. As a home buyer, you want to offer the highest and best to let the seller know that you are serious, financially approved, and able to close.
Working with experienced and knowledgeable realtors on the Sam Wilson Home Selling Team will help you craft a winning offer to buy your next home. Make sure you’ve taken all of the steps to become a qualified and ready home buyer.
As a seller, you want to work with a knowledgeable realtor who can evaluate offers for the buyer most likely to close. Having a deal that falls through and starting all over again can be distracting while moving forward with your replacement home buying experience.
The best advice for selling and buying in a sellers market in Denver Colorado:
- Don’t delay selling or buying
- Be prepared to act quickly
- Hire an experienced realtor
Is The Competitive Denver Real Estate Market Likely to Slow Down?
Based on current trends, the competitive real estate market in Denver will continue full steam ahead. These factors identify a competitive real estate market:
- A low number of homes for sale. The number of homes for sale in Denver—while at 2316 active listings at the end of January 2021—are still 53.13% lower than one year ago.
- Quick home sales as evidenced by median days in the MLS of 6 versus 26 days one year ago.
- Multiple offers. Home sellers are responding within 24 hours after evaluating not one but several offers.
- Cash offers. Due to high competition, buyers who offer cash and a fast closing are king resulting in disappointment for buyers using loans to purchase a property.
- High sales prices. It’s no secret that the prices of homes in the Denver market continue to rise. The average closed price is +15.71% versus one year ago. To offer a perspective, a $400,000 home in January 2020 sells today for $460,000 or more.
All of the above statistics confirm that if you are waiting to sell or buy—one way or another, you may make more money—but you may pay more money for your next home unless you are moving out of town to a more affordable market.
Who is Selling and Buying in a Sellers Market?
- Buyers who want to take advantage of low-interest rates to offset higher home prices
- Homeowners with starter homes or growing families
- Employees now able to work at home who want a dedicated home office and more space
- Sellers who want to downsize and put their home equity into another property that is less work and hassle
- Sellers interested in moving to be nearer to family even if that family lives out of state
- Homeowners experiencing a change in employment or a personal situation who are concerned about continuing to pay a mortgage
If You Are Thinking of Buying or Selling – We’d Love to Work With You
Are you thinking about buying a home in Lakewood, CO? 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 Aspen Park, Conifer, Indian Hills, Kittredge, Golden, Edgewater, Mountain View, Wheat Ridge, Morrison, Genesee, Lakeside, Evergreen, Ken Caryl, Idledale, and West Pleasant View.
© 2021 Sam Wilson All Rights Reserved. Articles by Pamela D Wilson