How's the Market?
One of the most frequent questions I get is: "How's the market?" Check out my monthly market update for April 2017 below.
1. Denver’s Transforming Market
If our home prices do not slow down or drop sometime in the next few years, we will be well on our way to looking like a West Coast housing market. Prices would soar (yes, even higher than they are now), owner occupancy rate would decline, and more people would be forced to either live in Denver and rent or move somewhere else. If you had to make that choice what would you do? Rent and save for a home or leave Denver altogether and move somewhere else?
More: When To Sell Your House
More: How To Buy In A Seller's Market
More: How To Win In A Multiple Offer Situation
2. Low Inventory
One of the main drivers of you red hot market is low inventory. Historically in March from 1985-2016, Denver has had an average of 15,000 active listings. In March of 2017, we had just 4,921 active listing. That’s 27% more active listings than we had in February 2017, a significant increase; however, it did little to slow demand.
3. Interest Rates Rising
Rates for a 30 year FRM are currently hovering around 4%. Look for another quarter point rate hike sometime this summer. In a market like ours where affordability is a major issues, rising interest rates especially rates above 5%, could become a major factor and ultimately cause prices to level off or drop.
4. Don't Wait To Sell Your House
In March, we ended the month with 3,772 active listings and 3,769 listings under contract. When the number of properties under contract meets or exceeds active listings, its known as compression. It means now is an excellent time to sell and a tough time to buy.
Sellers who price their home correctly receive multiple offers, usually for over asking price, have all of their needs met, and usually go under contract just a few days after listing. Buyers can expect a lot of competition and usually need to have an ace up their sleeve to be the winning offer.
If you're thinking of buying or selling this year, give me a call. I'd love to help you make your next move.