Even with the deep freeze across much of the country and Punxsatawney Phil predicting a longer winter, prospective home buyers and sellers are very active and looking forward to spring.
All stats below are based on End of Month in December vs January:
Homes on the market – 2,655 vs 2,439 (down 8%)
Median days on the market – 6 vs 6 (same, average days 26)
New homes on the market – 2,934 vs 4,084 (up 39%)
Homes sold – 4,943 vs 3,069 (down 38%)
Inventory in the 10-County Denver Metro fell for the 9th straight month in January. The percentage of homes that had been on the market for 30+ days and 60+ days dropped to 45% and 35% respectively, meaning there are fewer stale listings for buyers and their agents to sift through. Home sale volume dropped almost 40% from December but the median sales price remained steady at $455,000.
What if I’m a seller?
Even in such a strong seller’s market it’s still very important to price your home properly. About 75% of homes are going under contract within 14 days of hitting the market. It is likely that buyers and their agents will ignore your property if it sits on the market longer than 2-3 weeks even if it is a flawless home in a great neighborhood. If you’re thinking about selling within the next few months, there’s no reason to wait until March or April; list now to cash in on historically low inventory and near all-time high prices.
Here are a few blogs that might help you as a seller:
What if I’m a buyer?
With so few homes on the market, buyers need to be aggressive to get under contract. It isn’t uncommon for homes to receive multiple offers and sell for 5-10% over asking price right now. Buyers that are financing their new homes are often including appraisal gap coverage in their offers in order to compete with cash offers (that don’t require an appraisal). The good news is that we didn’t see any low appraisals in the entire month of January, which means buyers who opt to cover potential appraisal gaps are unlikely to be on the hook to bring extra money to the table. There are several lenders popping up in Colorado that are allowing buyers to write cash offers in order to compete with all of the other cash buyers out there. Please let your agent know if you’d like to learn more about one of these innovative companies.
Here are a few blogs that might help you as a buyer:
When you hire Trelora, you pay just 1% to sell your home. You’ll also get best-in-class customer service, and a team of expert agents who close hundreds of deals per year. And keep in mind, especially if you’re moving or you have friends in other states, that Trelora can help you in Atlanta, Charleston, Charlotte, Denver, Los Angeles, Phoenix, Raleigh, Sacramento, Seattle and Tucson. In the meantime, please stay healthy and safe.
Trelora – Denver
Mike is the Market Director for Colorado at TRELORA. He is personally responsible for closing over 600 successful real estate transactions and has played a role in closing hundreds more. He started at TRELORA in August of 2016 and began his real estate career in Jacksonville, FL in February of 2011. In his tenure at TRELORA he has been a Buy Manager, Buy Agent, Listing Agent, and Field Agent before accepting his current position as Market Director in January of 2021. Mike has a Bachelor of Science in Finance and a Master of Science in Entrepreneurship both from the University of Florida. Go Gators!