How's The Market?
Last weekend in Denver over 18,000 people participated in the Colfax Marathon or other affiliated races. Being a buyer in Denver right now is certainly a test of endurance as well and might even feel like running a marathon. Our market picked up steam in April and home prices continue to climb. Many homes continue to spend only a weekend on the market and go under contract for over asking price with extremely favorable terms for the seller. It's a great time to be a seller.
It's also a great time to buy. Here's why- it's likely that in a few years prices will be MUCH higher than they are now. We will probably still have very low inventory. Buying now means you get your ticket to the game and reserve your seat. It's an expensive price of admission, but well worth it. The way home prices have risen over the past 5 years means it doesn't take much time for your home to grow in equity.
I Want To Sell My House But...
- Will I be able to find a new one? Most likely, yes. Most sellers are accepting offers that allow them to live in their house for up to 60 days after it closes. This gives you about 2 months to find a new home and go under contract once you accept an offer on your current home.
More: Are We In A Bubble?
Should I Wait To Buy?
- Probably not. Home prices in Denver have increased ~10% every year since 2012. On top of that interest rates will almost certainly rise from 4% to 5% or higher in a year's time. This time next year, it will be harder and more expensive to buy than it is now.
More: How To Buy In A Seller's Market
More: The Truth About Zillow
More: How Much Money Do I Need To Buy A House?
Inventory: In April 2017, we only had 5,300 homes for sale; we usually have about 15,700 homes for sale in April (avg. 1985-2016), and given our population increase in recent years, we would need 67,000 homes built immediately to satisfy demand.
Prices: On average, homes in Denver are selling for 10.5% more than this time last year. What this means is if you buy a home in Denver and hold it for a few years, you will very likely be in a great equity position. There are so few markets in the nation that allow this kind of appreciation. Normally, homes in other markets appreciate 3-5% per year.