Market Matters: What Buyers & Sellers Need to Know NowAmanda Molitor
The last year has been a whirlwind in the real estate world. From the COVID-19-caused market halt to the subsequent tidal wave of homebuying, there has been no shortage of change in the marketplace. If you are interested in buying or selling a home but scratching your head trying to get a better grasp on the current market conditions, you are not alone. Here is a quick look into Colorado’s real estate market, emerging trends, and how those trends are affecting buyers and sellers.
Summertime Benefits for Buyers
With more consumers seeking homes that offer the unique balance of urban amenities and entertainment options and access to natural spaces, Denver Metro’s communities have remained a popular destination to buy and sell homes. However, the onset of summer has inspired many to finally take a vacation or travel to see loved ones, resulting in a slight decline in showing activity this season.
Looking at the number of showings for the month of July, it appears that overall showings only increased by just 0.1%, according to data from the Denver Metro Market Review for the month of July, a monthly report compiled by Megan Aller of First American Title.
This change of pace provides buyers with more opportunities to purchase homes in Colorado since there are less people in town placing competing offers on the limited number of available homes. The takeaway for buyers is that by putting in some additional effort during the summer, when you would rather be lounging by the pool, you’ll have better odds of making the winning offer on that home you’ve had your heart set on.
Setting Seasonal Selling Expectations
Sellers, this slow showings season affects you too. With less people actively shopping for real estate, your home may not fly off of the market as quickly as you were anticipating. This means that you must be strategic when pricing your home. Now is not the time to shoot for the moon. Work with your LIV Sotheby’s International Realty broker to find a competitive yet fair price that will help you reach your financial goals while attracting motivated buyers.
Data from the July Denver Metro Market Review shows that the number of attached and detached single family homes that closed for over asking price fell in a month-over-month comparison during July, even though home prices in Denver Metro continue to appreciate.
In fact, home prices have appreciated by 24.8% to reach and average price of $650,278 for single family homes and rising by 16.1% to reach an average price of $437,130 for attached residences through Q2 of 2021 compared to the same period in 2020. Other highly sought after market have also seen encouraging appreciation such as Boulder (+26.7%), Summit County (+25.1%), The Vail Valley (+21.4%), Crested Butte (+39.4%), and Colorado Springs (+20.8%), according the LIV Sotheby’s International Realty’s Q2 Micro Market Reports. This data reassures sellers that although the slight dip in competition may result in less offers over asking price, their homes will still be sold for a price they will be happy with.
Understanding the Increase in Inventory
As you may have heard, Denver Metro has seen an increase in the inventory of available homes for the first time in a long time. While the improvement is exciting, consumers should be aware that inventory is still very low. Currently, there is only about 0.5 month’s supply of inventory for detached single family homes and 0.4 month’s supply of inventory for attached single family homes – well below 6 month’s supply mark in which the market would be in equilibrium.
Let’s celebrate the small ‘wins’ as the market makes strides in the right direction but also pay close attention to the context surrounding those improvements.
Overall, Colorado’s real estate market continues to provide opportunities for success to both buyers and sellers. Learn more about the your community’s performance by reading the latest Micro Market Reports from LIV Sotheby’s International Realty or contacting one of our expert real estate advisors.