Happy new year! Despite the Covid pandemic and an unusually tumultuous political season, real estate remains a dependable and steady economic guidepost for thoughtful buyers and sellers.
All stats below are based on End of Month in November vs December:
Homes on the market – 3,690 vs 2,655 (down 28%)
Median days on the market – 6 vs 7 (up 17%)
New homes on the market – 3,551 vs 2,934 (down 17%)
Homes sold – 4,977 vs 4,943 (down 1%)
Inventory in Denver Metro dropped for the 8th straight month in December. The combination of extremely low interest rates and the influx of buyers relocating from higher priced cities like New York City, Boston, Washington DC, and San Francisco caused homes to continue to fly off the shelf! But home sale volume remained steady, and the median sales price leveled off a bit to $452,500.
Looking at the inventory numbers closely, a more illuminating picture emerges: roughly 60% of the homes on the market at the end of December were on the market for 30+ days and roughly 40% were on the market for 60+ days. Whether it was because of issues with the house or the seller was being unrealistic about the price, this meant that buyers had even fewer good options to choose from with an already kid sized pool of potential homes.
What do I do as a seller?
If you list your home tomorrow, there is a good chance you’d be the only home in your neighborhood on the market. Properly priced homes are still getting a lot of attention and are often receiving multiple offers. In years past, most sellers have waited until March or April to list, but given the current state of the market, there is no reason to wait until spring this year. Additionally, some sellers worry that a wave of inventory will hit the market once banks lift their mortgage forbearances and the residual effects of Covid finally catch up to the real estate market here in Denver, so you may wish to move quickly.
Additionally here are a few blogs that might help you as a seller:
What do I do as a buyer?
Those buyers that have stuck with it and remained persistent into the new year will be rewarded! Inventory will rise as it does every January, and there will be less competition since some frustrated buyers decided to throw in the towel around the holidays. Interest rates are expected to climb a whole percentage point from current rates of ~2.8% on a 30-year fixed rate mortgage to pre-Covid levels of ~3.8%, so buyers should try to cash in on these low rates while they last.
Additionally 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.
Sold over 1,000 homes
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!