Denver’s spring market is officially here!
We have a few records highs this year, so let’s start with those –
- The average single-family detached home price has hit an all-time high of $553,371 at the end of April.
- We have doubled our average days on market this year so far!
- Inventory is up 35.89 percent from last year at the same time.
Let’s put those three things into perspective –
- Prices are up because inventory is still really low and so are interest rates.
- We have gone from 6 days on the market to 12! It’s a good thing in my opinion. I know it’s hard to have your house on the market but not being frantic and moving at lightning pace is good.
- We are only at 7,012 homes on the market and an equal (buyer/seller) market we would have 15,399 homes available in April. We would need to double the inventory.
Interest rates are .25 to .38 lower than they were a year ago, mortgage applications have increased and it sounds like the Federal Reserve is trying to keep the rate steady for the next year.
Bottom line is… price your house correctly and you should only be on the market for a few weeks. Buyers are still the defining factor in what your home is worth. We are seeing price drops but as I look at some of those they were just asking too much and the buyers are not willing to pay it. I don’t think you need to drop your prices in one weekend. I think you need to listen to how many showings you have had and what the feedback is.
Buyers – don’t be afraid to make an offer. But if you are in a multiple offer situation coming lower than asking probably isn’t going to win the bid. But interestingly enough, I don’t think buyers are willing to make offers until the seller gets realistic. If your agent has been in business less than 5 years, they might know how to win in a multiple offer bidding war but do they know how to make an offer, negotiate and get the house at the right price? Why are you waiting until you are in a multiple offer situation and not making an offer before the sellers drop their prices to start the bidding war?
Sellers are still getting 99.24 percent of list price. This tells us that when the house is priced right the buyers are willing to make an offer. Again, why are the buyers waiting for the seller? Get an experienced agent and buy the house you want at the right price.
A year ago we had nay-sayers saying we were headed for a crash and that we couldn’t possibly sustain our prices but pay attention to the inventory. This absolutely means the inventory in your neighborhood and your competing neighborhood, in your building and the buildings that traditionally compete with yours. If you don’t know what those neighborhood or buildings are, I do. I’m happy to help look at your individual situation. The inventory is a crucial part of pricing. Buyers are willing to pay more when there isn’t much inventory. Interest rates are still really low and that also helps.
Last but not least, Tax Assessments are out and causing consternation. Let me know if you want comps to fight your assessment. I’m happy to help.