Why sellers should prepare to list now

After an unusually slow October in which the mid-term election seemed to consume potential buyers and sellers’ attention, the Denver real estate market is picking up. Showing activity and pending sales are both up in November over October.

With pending home price and mortgage rate increases coming next year, I expect increased activity up to Christmas. If you’re thinking of selling in the Denver market, the time to act is now!

With the market peaking earlier in 2019, sellers should prep to sell now

Since 2013, the list-to-sale price ratio of Denver metro area homes peaks in April, May and June each year. The data also shows that the price peaks are creeping earlier every year.

In 2018, the April and May were the peak with March not far behind.

Source: First American Title

Given that list-to-sale price peaks have occurred earlier each year for the past five years, I anticipate that 2019 will continue the trend. Given that the above chart represents data from actual closed sales, properties represented by these purchases hit the market at least a month earlier.

Get my essential Denver seller guide here.

That means February is go time!

Sellers serious about getting top dollar for their home should be listing in early February, especially those looking to sell higher-priced homes, which, depending on the neighborhood, remain on the market from 45 to 90 days.

With affordability shrinking, interested buyers should be aggressive

Buyers are smart to act now. With Freddie Mac predicting interest rates on 30-year mortgages rising to 5.0 percent by May next year, buyers can avoid higher interest payments if they act now. With the combination of higher interest rates and an increase in home prices, the average monthly mortgage payment on an average-priced single-family Denver home is expected to jump 14.4 percent year over year in May 2019!

Source: First American Title

In addition, buyers who act now can snag homes at lower prices than they would in mid-2019, when the average sold price of a detached single-family home is expected to jump 9.1 percent year over year to $573,470.

As home prices tend to hold level before the spring buying season kicks off, cost-conscious buyers are smart to hunt now (from late this month to late February).

Source: First American Title

Click here to set up a 20-minute appointment to discuss your real estate goals. Thanks for your loyalty and keeping me in mind for your friends and family considering real estate transactions in 2019!