For those who watch TV, listen to the radio, read the paper, or communicate with others, you might recognize that the national economy – with Denver as a primary city – enjoys growth, low unemployment and a consistently healthy real estate market.
There is no “Breaking News” on the real estate front, however, the good news is that the national average (reported by RE/MAX) for a home to sell was 60 days in March while in Denver it was 30. Only San Francisco (20 days) and Seattle (28 days) sold faster. Denver has a one-month supply of inventory, where a typically balanced market ranges between a 4-6 month supply. The US Census Bureau reported that Denver is one of 28 cities growing by at least one percent a year (1.8%) and there are currently 53 metro areas in the $1million-plus club.
In April, the average sales price of a home (compared to 4/17) was up 11.3%. This suggests Denver will experience annual appreciation between 9-10% again this year, keeping pace with cities like Portland, Seattle, Dallas and several California cities, among others. Denver sales transactions were modestly 1.3% higher in April than a year ago, but that’s considering active listings were 4% lower than a year ago.
Current MLS statistics reveal more single-family homes are available for sale in the $500-$750k range than in all price ranges, including below $500k. Values in the luxury market (over $1 million) have increased, but not at the fast pace of the +/- $500k market, which annually appreciated anywhere from 8-14% in Denver over the past five years. The luxury market has only increased from 1-5% annually, indicating the pricing gap is closing, spelling opportunity for luxury buyers (think about it). Denver’s luxury market saw 586 homes sell in the first four months of this year (a record), as compared to 200 homes at this point in 2014.
Typically the higher price range suggests a longer sales cycle for homes to sell. Nationally a luxury home sale takes 116 days, and 92 days in Denver. According to Realtor.com the most expensive markets are 1) NYC at $5.284 million, 2) San Mateo, CA at $3.37 million, 3) San Francisco, CA at $3.214 million, and 4) Eagle, CO at a mere $2.89 million.
Conversely, homes appreciate quicker under $500k, dependent upon the city. This is challenging for first time buyers (but not improbable). These buyers are finding success as the under 35 age homeownership rate was 35.3%, according to Trulia, for the first quarter of 2018…so keep your focus, stick to your plan, and make it happen!
Everybody loves good news! But not every house sells quickly and certainly not at any price. In today’s market, a seller should review why their home hasn’t sold in 30-45 days. Below are reasons and ideas to achieve the best sale in any price range:
BTW, exterior staging is quite helpful. People buy the outside first. Refresh the gardens, clean the windows/screens, update door fixtures/address numbers, and paint both trim and the front door. First impressions count!
This is a market to enjoy, appreciate and take advantage of, if at all possible.