The market’s hot as active listings, inventory and days on market increase
Summer is fast approaching — can’t wait for some peaceful time in the mountains (I’m sure you’re in the same boat :)). But before then we have a blazing hot market with lots of activity, as inventory finally has balanced out the sellers’ market that’s dominated the last few years.
That’s good news for market, even if sellers will see less of a hey day than they did in recent times. Buyers are out there and sellers are listing.
[How to sell your Denver home for more in 2019]
Looking at market trends can be daunting, so I outlined some stats to help you make scene of it all! If you have any questions about selling or buying in Denver, I would love to hear from you.
In April, the percentage of transactions that included seller concessions jumped 58 percent from April 2018. This means sellers are having to bend more to get homes sold — the blazing hot sellers market we’ve experienced over the last several years is definitely cooling.
Denver’s market swells with increased inventory and an influx of more contracts. In this market, buyers enjoy more options and sellers benefit from spring’s demand jump.
As the summer rapidly approaches, we expect to see the number of homes that go under contract taper each week.
2019 property tax assessments
You may be noticing increased property taxes on the 2019 tax assessment forms you received recently (if you’re a homeowner). It’s a double-edged sword — home values rise, but taxes go up.
These taxes are a pain but as they go up we all benefit with more money for our school districts, local governments and special districts.
Luckily, Colorado has some of the lowest residential property taxes in the country! Homeowners pay less than 1.0 percent of their home value in taxes every year.
When you receive your new tax analysis, don’t hesitate to contact me if you feel the recent sales are inaccurate. Appealing them is a good idea.
The tax assessment shares a subjective report on the “market vale” of your home and does not factor in the market value of your home on the resale market.
Don’t forget that tax discounts are available to seniors and disabled Veterans. Information is power!
Even though some statistics seem to convey a saturated market, the right perspective allows you to understand that the market’s fairly healthy!
In comparison to last year, mortgage applications increased 3.0 precent and mortgage rates are from 0.25 to 0.38 percent lower.
Source: Denver Metro Association of Realtors
Homes this year took twice as long to sell in the first four months of 2019 compared to the same period a year ago, according to the Denver Metro Association of Realtors’ May report. Sounds concerning, doesn’t it?
The twofold increase means that the median of days on the market went from six days on the market in 2018 to 12 days in 2019. However, selling a home in under two weeks is still very fast!
Sellers be warned. The perception of the increased period of days on the market affects the way buyers approach sales. Moving into July buyers will unlikely offer asking price. Recently, buyers feel listings on the market for a short period of time indicates an overpriced property.
In case you were wondering, price reductions still trend. The rise of inventory broadens buyers choice and allows for more negotiation leeway.
[See why Denver seller’s market is waning]
April ended with 7,012 active listings. In the previous four years, April ended with active listings below 5,000. This selling season rolls ahead with active listings increasing to 35.89 percent from last year! The market’s in full bloom.