Core Denver neighborhoods remain in demand, but on-the-fence sellers should list now
The broader Denver metro real estate data shows a reduced activity from July to August, but it’s not clear whether this is an actual slowdown in the market or just the typical cooling that happens every year when summer ends.
As vacations end and the school year begins, the buyers in the market approach homes with a more careful, patient approach. They are not rushing to buy, sell or move before the school year begins.
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Regardless, the market’s extremely low inventory, particularly for single-family homes, keeps a pressure of demand present. The Denver metro 2,469 active single-family listings at the end of August represent a drop of 25.3 percent from a year ago and 14.2 percent from July, according to Denver Metro Association of Realtors data.
At the same time, prices dropped slightly from the previous month and properties are taking a little longer to sell. Despite the continued shortage of inventory, the average days on market for single-family homes rose 25 percent from July.
This presents a confusing market for Denver area buyers and sellers.
Certain areas are cooling, such as in Littleton where I was shocked to see four listings in the $500,000 to $600,000 range on the market at the same time. That price point has been on fire, with homes fetching multiple offers within days of listing. That wouldn’t have happened, even a couple of months ago.
And, even though inventory remains low, more homes are beginning to come on the market.
However, central Denver neighborhoods remain in extreme high demand. While the some parts of the market are seeing a cooling, there’s a flight to quality. And the most desirable metro homes — those in central Denver neighborhoods such as Congress Park, Cherry Creek and Wash Park — are the cream of the crop, with desirable public schools and a close proximity to Denver.
But I do have one recommendation for sellers on the fence in these neighborhoods; if you want to get a lot of action on your home and get top dollar, now’s the time to list.
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So, what shall you expect to see this fall and beyond?
Due to the low inventory, fall 2021 can be a great time to list because you can avoid competing with homes planned to hit the market in Spring 2022.
What to expect in 2022? Unless there is a steep rise in interest rates or an immediate surge in inventory, you can expect the 2022 market to behave much like this 2021 market (multiple offers, sales over list price and low inventory).