Fall inventory drop + prices rise
The themes of Denver’s hot real estate activity continue as we deepen into fall, with one key difference: they’ve become much more extreme.
The number of Denver metro homes for sale were way down in August — 14.78 from July and 41.22 percent from August 2019. That means an already rock-bottom inventory, got even smaller, which, given that demand has remained high, in part thanks to all-time low mortgage rates, pushed prices to all-time highs.
The average price of a Denver metro home jumped past $500,000 for the first time in March 2020, and has continued to rocket upward. In August, the average metro home went for $542,784, an 11.78 percent jump from August 2019, and 13.92 percent from January.
Source: Denver Metro Association of Realtors
Prep to sell in 2021
With the U.S. Presidential election rapidly approaching, and an uncertain winter of Covid-19 looming, it’s a good time for sellers to begin preparing for spring 2021, when inventory will most certainly rise, prices remain positive for sellers and overall clarity better.
The fall and winter months are smart times to prepare for a sale. Begin organizing your home, start going through your possessions and winnow down what you don’t need. Organize your drawers, develop a home maintenance and spruce-up punch list, identify some simple landscaping opportunities.
In addition, refresh your light fixtures, start making trips to Goodwill. I can’t tell you how much better your selling experience will be if you start now.
Also, many service providers see a winter slowdown and will often provide faster service sometimes at a discount than in months where they’re slammed. Reach out for some of my most trusted handymen and service providers.
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Because interest rates are so low, more buyers are seeing homeownership as a viable option, even with the recent price jumps in Denver metro. It’s not just first-time buyers, either; I’m seeing second-home buyers jump into the market and winning mortgage rates in the 2.5 percent range.
Lower mortgage rates really help. For example, on a $500,000 home and a 20 percent down payment, monthly mortgage payments drop nearly $150 per month when interest rates drop from 3.75 percent ($2,091 per month) to 2.75 percent ($1,872 per month).
All this lends me to suggest that buyers, whether first-time or return, ready to purchase a home, should aggressively pursue a home. While inventory has been very low, the fall and winter, especially one during a U.S. Presidential election, brings lower competition from other buyers. Be ready to move quick, however. Homes are flying off the market, at an average of 23 days for detached homes.
If you’re even thinking about buying a home or making an offer, reach out to talk through your options. I can give you my expert opinion on really to put the petal to the medal now, get prequalified and start hunting now or to wait until spring until there’s more inventory. Every family is unique.
Reach out anytime.