Denver Bucks National Real Estate Trend
Nationally, homebuyers have been dealing with a significant seller’s market for the past four years. Yet the housing market in Denver, CO has shifted recently with nearly a 12% increase in the housing inventory on the market in August. In many other regions (such as Rochester NY real estate), there is still a significant housing inventory shortage, which has made it difficult to buy homes.
There are approximately 8,228 homes on the market right now in Denver. In addition to the increase in housing availability, there is a marked drop in home prices. The average price for a home in August was $410,000. This is down 1.2% from July.
As the housing inventory continues to increase, it’s natural that the average home price will continue to decrease even further. This is because the Denver, CO area appears to be shifting from a seller’s market to a buyer’s market.
Because you can factor the average days on market into the price of a home, selling in a seller’s market often causes bidding wars and price increases. In 2016, the average home for sale was on the market for no more than 4 weeks.
Because a seller’s market favors the seller, real estate pros recommend pricing homes on the high end of their value spectrum. Typically, you can expect between 5% to 10% more from the value of your home in a seller’s market.
The best recommendation when dealing with selling your home is to find an experienced real estate agent who understands the market in your area. An effective real estate agent should be able to take this current market trend in Denver and determine the best home price for your situation.
If you’re looking to buy a house in Denver, keep in mind that the higher the inventory, the better your selection and negotiating position. With more competition, more sellers will lower prices to entice potential buyers.
Despite this shift in the local real estate market, it’s still very likely that market conditions will continue to benefit sellers. What’s more, because the local housing market is expected to see an increase in activity over the next couple of months, the real estate ground could shift rapidly as 2018 draws to a close.
