We are officially in the craziest time of the year for Denver Real Estate. While we hear all the time the market is crazy, what does that really mean? It means quite different realities for buyers and sellers so we will look at it from both viewpoints. But first, let's talk market stats.
Summer used to be the "crazy" season for Denver Real Estate but over the past 6 years, spring has claimed that title with no questions asked. Since the New Year, buyers have been out in full force trying to find that perfect home before summer hits. Who wouldn’t want to have all summer to get settled and enjoy a new yard for entertaining?
Sellers, on the other hand, typically aren't crazy about selling until school is out and the weather is better.
So what we are left with now is an incredibly pent up demand for home inventory which explains why homes are increasing in value 2-3% a month. There are currently around 4,000 homes for sale in the Metro area, a population of almost 3 million people. The supply demand equation greatly favors sellers right now, thus these quickly escalating prices.
If you are thinking of selling, I can't say this strongly enough, NOW is the time to sell. If you want to get the highest price with the strongest offers, April to early June is the time for that. There is no better time during the year to sell, period. Why? The buyer’s are out in droves, and when you have the only dangling carrot available, you bet you will get paid top dollar in return.
Now, I know this doesn't always fit your plans though so let's talk about the next best times because timing can be everything.
To you buyers who are out shopping right now, be strong and don't give up hope. I won't lie and say it's easy, but I will say that it’s not impossible because we have buyers who are closing on homes every week. It does take a strong game plan, however, and a very knowledgeable agent who can guide you through the process.
So why wouldn’t you just wait until the market cools down a bit you ask? While it seems like it would be easier to just wait until that magical unicorn day comes, you need to keep this in mind: if you don’t buy now, you will likely see another 4-6% in appreciation in May and June alone, and you that could diminish some of your buying power. If you choose to capitalize and purchase on that same notion, that is some pretty amazing equity to be walking into on your new home. Oh, and did I mention interest rates are expected to rise an additional 3 times this year? Time is of the essence.
I get it though, your dream home just didn’t fall in your lap this spring, don't despair. July and August are great times to buy and many would argue the best time to buy. For whatever reason, buyers disappear once fireworks start flying, and those on-the-fence sellers finally decide to sell. We see some of the greatest inventory in July and August along with some of the lowest demand. Don't go thinking you're going to get a house for nothing, but instead of 20 offers to compete with, there might be one or two.
The lesson here is for buyers who plan to buy in the next 12 months. I urge you to really focus on July through September as your prime shopping moment. You will get some of the lowest prices of the year along with greatest inventory. If you are in a lease until next spring, weigh the cost benefits of breaking the lease and buying during this time. By the time your lease is up, prices could be an additional $50K higher and unless you're renting the entire Four Seasons, I can guarantee your lease would cost less to break than that.
If our team can be any help to you in making those decisions, we’d love to hear from you!