Denver real estate market statistics for 2014 were definitely interesting! We have hit an all time low of homes to sell with only 5,352 homes available to purchase in the Denver Metro Area. It is undoubtedly a sellers market. This doesn’t mean a house can sell for way more than it is worth, unless of course a buyer really wants it and they are paying cash and they don’t care what the house appraises for or they are to pay more than the houses appraises for.
What is happening in the Denver Real Estate Market?
We are seeing that sellers are pushing their limits on pricing. Buyers are continuing to educate themselves and know what they are willing to pay. If a buyer is willing to pay it, the seller can push it. If you have your property listed and it isn’t selling, the buyers are rejecting your price. We have less than a six week supply of homes for sale in Denver.
We are sometimes finding houses for our buyers that are not yet on the market and sometimes helping our sellers sell without putting it on the market. We are making offers for our buyers when we know there are already three offers on the house that just went on the market an hour ago. We are taking several offers to our sellers the same day it went on the market.
Most years we see a little bit of a slow down during the holidays but not this year. The only slow down was because there weren’t enough house to show. I may have had a record number of offers written and not enough accepted for my buyers in December. December always has been a somewhat busy month, but this year was busier than ever.
The market isn’t going to wait until spring, it is happening right now.
Prices will continue to rise as the inventory stays low. Single family home prices went up 11% from a year ago. If we see more inventory we may see some flattening of house prices, but I don’t see that happening anytime soon, we saw an 81% drop in condo inventory, which is more than significant. We will need to at least double our inventory for house prices to flatten out.
What is going to happen the the Denver real estate market in 2015?
House prices will continue to rise. Interest rates are projected to go up to 5% by the end of the year. We are going to see a slowdown on some appraisals as the lenders (Fannie and Freddie) make some changes. I am going to remind you, hire a professional who is experienced.
Buyers, you need to look at houses with a checkbook on you, so that when you see the house you like, you are prepared to write an earnest money check to be presented with your offer. Once you are under contract the process is getting more complicated and you need someone who will help you through it. It is an amazing time to buy, rents are higher than mortgage payments. You need to start talking to me (or an agent) now. If something that fits your criteria comes to our attention before it goes on the market, you may have a better chance than waiting to see what hits the market. You aren’t going to see any “deals” when it comes to pricing again this year. Your “deal” will be the better your credit the lower your interest rate, and then of course, paying a mortgage is better than renting when it comes to long term wealth.
Sellers, once you decide to sell, hold on tight, it is an exciting ride and one you won’t regret!! It is the time to move up!
Let me know how I can help you with any of your real estate needs.