If you’ve seen the news lately, you know that the Denver real estate market is on fire! Low inventory and low rates have fueled an unprecedented buying frenzy. Not to mention, with the rise in remote work across the country, many people are relocating to Denver to take advantage of our outdoor lifestyle and sunshine. As we head into March, let’s take a quick look at what’s going on in the Denver market.
Prices keep rising (and rising fast!)
According to a recent Denver Post article, annual price appreciation is at 18.7%. That number not only represents a hot market, it also indicates that prices in Denver continue to rise. This stunning statistic illustrates how fast prices are moving upwards - “there were 70% more homes worth $1 million or more sold in January 2021 compared to January 2020.”
So, what does this mean for homebuyers? Buyers need to be prepared to offer above asking price. Bidding wars, multiple offers, it’s all happening now and buyers must be ready to act quickly.
Buyers are facing historically low inventory
The Denver Post article also shared that buyers in January 2020 had less than half as many available properties compared to January 2020. Compared to the average inventory dating back to 1985, buyers had 83% fewer options. Homes are going off the market FAST. According to 9News, homes are lasting five median days on the market.
Again, speed becomes an important factor for buyers. Many homes have upwards of 25 offers after just the first weekend, so you better bring your best offer first! This isn’t a time for back-and-forth negotiations; buyers need to bring a strong offer to the table if they want to compete.
No one knows how long low rates will stick around
Mortgage rates are low, low, low. Those low rates are driving the competition in the marketplace, since locking in a low rate is incredibly beneficial when buying a home. Let’s be honest - no one can predict whether mortgage rates will go up, down, or hold steady. That uncertainty motivates buyers to jump on low rates when they are available.
According to NextAdvisor, many experts are predicting that rates will tick upwards in 2021. That doesn’t mean home shoppers should panic, but it is an important consideration for buyers.
2020 brought a host of unexpected disruptions that affected the market. While we can predict some upcoming market changes, some outcomes remain to be seen, like the economic effect of the vaccine, combined with the potential for inflation. If you are curious about rates, please reach out to me and I can connect you with a home loan expert.
Bottom Line: Expect the unexpected
Today’s market is like nothing we’ve seen before. If you’re getting ready to buy a home but you’re nervous about jumping in, don’t be! I would love to help you find a fantastic home. Selling your home? Prepare yourself for the possibility of a high number of showings and multiple offers. The right real estate partner can help you navigate this crazy market, and I’m always available to answer questions or just have a conversation about your goals! Call or email me at 8Z Real Estate today.