Denver market is shifting

It’s true! As temps drop, so do prices!

The Denver market is seeing it’s typical seasonal slow down a little earlier this year. This is thanks in part to the 1,000’s of buyers that were extremely frustrated this summer and for the past 3 years with rising prices, bidding wars and lack of homes to buy. Usually Denver sees a slow down in home purchases in mid to late November, but this year, the slow down started in July! After dealing with bidding wars and waived contingencies, buyers were so frustrated that a lot of them decided to stay put and possibly remodel or improve their current residence. Craigs Menear, chairman, CEO and president of Home Depot stated, “We were pleased with our results this (2nd) quarter as our customers rewarded us with the highest quarterly sales in company history.” A lot of my buyers contributed as they hung up their “house buying” hat and put on their “house updating” hat. Sellers, of course, reaped the benefits by getting higher prices for their homes, buyers waiving contingencies, and being flexible on the closing date so the sellers could make their moving plans. That historic market has definitely affected today’s real estate in Denver.

For the past 3 weeks, the Denver Metro MLS has shown 1100-1500 price reductions on available properties for sale! This means that sellers (and their agents) have not gotten the message yet about the cooler market. They are listing their homes with summer prices and expecting a bidding war in a very short time, and that is simply not happening. Sellers are also counting on desperate buyers that will do anything just to buy their house, such as waiving their rights to inspection, covering low appraisal values and letting the sellers stay in the house rent-free after closing! Those times are on hold for the moment!

Don’t get me wrong, prices are still going up and all signs point to continuing price increases for the next couple of years. Denver still has a super-low unemployment rate with several companies moving their businesses to Denver and the Front Range in the coming years. We also have an insane amount of activities, concerts and sporting events as well as an awesome view of the Rockies. Our weather is super desirable by those that love sunshine while still experiencing all 4 seasons (sometimes all in one day!).

So what does all this mean to home buyers and sellers? Now is an awesome time to move up in house value! Properties priced under $400,000 are still in pretty high demand, but overall around Denver, buyers can expect to purchase a home at or slightly under the list price. There are always exceptions: for instance, if it is in a highly desirable neighborhood or priced lower than market value. Since their are still some buyers out there trying to get into their first home, selling your home and buying a home at a higher price point where there is less competition, means you can maximize the value of your home and the bargain you can get on a more-expensive home! People looking to downsize will experience the opposite effect and so I don’t recommend doing that this winter! The other factor driving buyers to act now instead of waiting until next spring/summer is the fact that the FED is going to slow down their purchases of mortgage backed securities thus making the interest rates finally start rising as promised.

Historically, Denver has always seen an increase in prices on average. Waiting until next year to purchase your home only means you will have to pay more and may not be able to afford the house that you want to buy this year. This fall and winter will be the ideal time to sell your starter home and buy a more expensive home! If you are thinking about building a home, lock in the price now so that you will close when the market is hot and gain instant equity! I personally have done that and it is a great feeling when you close on a house and know that it is worth more than you are paying! Check out my YouTube Channel to find out more about building a home as that is my speciality!

If you want to get in touch with me to run some numbers, fill out the form below and I will get in touch with you ASAP!

Let’s see what happens to the Denver Market

Should we wait to buy?

I hear that time and time again. I don’t want to buy right now because the Denver Real Estate Market is inflated and I don’t want to overpay. In fact, that is one of the main worries among all the buyers I have talked to in the past couple of years. It is the one worry I do not have a crystal ball for. Buyers are also worried about buying a lemon of a house, but that is what inspections are for.

Everyone wants to know what the market will do in the upcoming years so they can begin to plan their housing strategy now. I know buyers are not getting as good of a deal than if they had bought last year or anytime in the last 10 years, but they are just going to have to bite that bullet if they want to move on.

Here is what we do know:

Waiting to buy is bad

It will cost you more to wait!

  1. Historically, prices have been increasing on average since homes were first being bought and sold by our ancestors. There may be some downfalls in price and season slow-downs, but overall they will continue to increase.
  2. Denver continues to see more large companies moving their operations here. People are enjoying more of our parks, mountains and many other outdoor activities and finding they want to stay here.
  3. More people are moving to Denver than there are houses being built. We have an incredible shortage of homes for sale. As the law of supply and demand shows us, the constant high demand for housing creates more value in the houses that are available and in turn the prices go up.
  4. Interest rates on mortgages are going to increase. The government has warned us over and over that they are raising rates. While their rate increases do not directly affect mortgage rates (as seen by the recent reduction in interest rates), we do know that eventually they will balance out and increase.

If you have ever thought about buying a home, now is the time. Please let me help you or anyone else you know that is considering buying a home in Denver. You may not be the early bird catching the worm, but the longer you wait, the harder it will be to swallow the worm you get!

 

Open house at new listing – 11314 Jersey Way – Thornton, CO

Open House this Saturday – May 3, 2014

 
This home will be under contract by the end of the weekend! Every room has been updated with new floors and new trim! The newer appliances, counter top and light fixtures in the large kitchen make this an entertainer’s dream! When everyone isn’t in the kitchen, they can enjoy the vaulted ceiling and custom fireplace in the living room. The open floor plan in this home situated on the biggest lot in the neighborhood (almost 1/4 of an acre) make this home seem a lot bigger than it really is. Please come out to see for yourself at the open house this weekend from 12:00 to 4:00 pm on Saturday, May 3rd. The seller is not allowing any showings before the open house, so don’t miss this opportunity! The list of upgrades is too long to list here!

 


 

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