The Denver Housing Market – it’s a science they say.
Have you heard the media saying that there is a science to pricing your house in Denver?
If you talk to Realtors like me who have been in the business for a long time, it has always been a science to pricing your house, and right now, the science is more apparent than ever when pricing a house to sell.
Decoding Denver’s Housing Market Trends
With the low inventory and the interest rates hovering in the 7s, we are not in a typical year. This is the 3rd year in a row we have seen unprecedented obstacles which lead to good opportunities. Remember that part, whenever there is an obstacle there is an opportunity.
Here are a couple of things I think are important to know – almost half of our homeowners nationwide have at least 50% equity in their homes. Wealthy millennials are moving away from California and New York and Colorado is ranked 4 on the places they are moving to. Investor purchasers are down 45 percent year over year.
Those numbers are important because it is a reminder that we as our interest rates hover in the 6,7 and potentially 8% range, which by comparison is an average interest rate, people have money in their house to leverage to purchase the next house. That is opportunity.
We have more inventory than last month but not last year. That is opportunity.
Average days on the market are 26 – up from last year, but lower than a “regular” year, that is opportunity.
Our prices have dropped slightly from last year, 1% but that isn’t anything to worry about during this time of the year. That is opportunity.
Denver is ranked #4 in the strongest housing market across the country. That is opportunity.
People who can afford to sell their house or rent it out in the Denver Metro area and leverage the equity will win if they purchase before rates drop again. We have too many people sitting on the sidelines. Some will be able to afford to buy when the interest rates drop but they probably won’t get the same house they are looking for because prices won’t stay flat once they dip under 6%.
Navigating Denver’s Housing Science
Do you want to get your house sold? Whether you want top dollar or you just want to get your house sold, you still need to price accordingly. We’ve talked about strategic pricing for years. Strategic pricing is when you price according to what is happening in the market. Maybe you price it slightly lower than what it is worth because there are several other houses on the market and you want to make sure you receive the offer that weekend. There are several strategies you can use not just the price it under value. If you have a great Realtor, she’ll know what to do. If you don’t, give me a call, and I’ll help you.
Denver Housing Market Insights
Right now we are seeing the people who need to move are moving. There are a handful of people who think we are not going to see the interest rates drop or they don’t want to compete in the Spring – those are the people who are taking advantage of the opportunity of the great houses coming on the market now and selling now, thinking they will see their equity rise as early as next spring.
Do you have equity in your house? If you aren’t sure, message me so we can take a look. You know if your stocks are down right? Let’s take a look at your home equity.