January Market Update
Prior to December 2020, the lowest amount of inventory actively for sale in the 11 County Metro Area was 3,200, totaled between both detached and attached single-family homes. On December 31st, 2020, a record 2,541 homes were reported for sale in the entire Denver Metro Area, 1300, of which were detached Single Family homes.
There are a few very important things to understand when you’re entering this market as a buyer. First, it’s going to be hard and it’s going to cost you more than you thought it would in terms of time, money, and emotional stamina.
But it’s not impossible, and if you can make it through and land your house, you’re going to benefit immediately in the form of equity. Our record-low inventory is driving the market value of homes up and up and up. (Home values are up 13% year-over-year). Once you close on your home, it will begin appreciating aggressively, and that will continue for years to come. Historically, our market would be considered “balanced” with around 15,000 active listings. We have 2,500. It’s going to take a long time for buyers to have the upper hand, and for homes to stop appreciating aggressively.
Second, it’s not that there’s a deficiency in listings, it’s that there’s a massive surplus of buyers. We had more transactions in the metro area in 2020 than we ever have. Listings are coming on the market faster than they normally do. But, with ultra-low interest rates, buyers are able to find ways to make their home purchase affordable, so they’re eating up inventory much quicker than metro-area homeowners are able to get their homes up for sale. It will be of the utmost importance that you strategize early and often with your Real Estate Agent regarding how you’re going to get the house you want when you find it. In all likelihood, you’ll be competing.
On the other hand, if you’ve been thinking about selling your house, the market needs you sooner than later. Pick up the phone and contact an expert to figure out what needs to be done to get you top dollar. If you’re hesitant to put your home on the market because you’re nervous about finding your replacement home, ask about Home Swap. The program allows you to find your new home and make an offer before you sell your current one.
-BSW Real Estate
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