Extreme Bidding Wars Predicted to Continue as Inventory is Down Nearly 50 Percent From Last Year
The scarcity of homes in the Denver area continued into January 2022 with a mere 1,184 homes available for sale at the end of the month across all 11 counties, representing a 48.88 percent decrease from last year. A total of 3,479 new homes came onto the market and 3,825 went under contract (i.e. coming off the market because they found a buyer) (DMAR).
The average sale price of a single-family home in metro Denver came in at $689,711 an increase of $60,552 from the same period a year ago.
So what does this mean for Denver metro homebuyers?
- It’s going to be competitive. Work with an expert Realtor who is going to help you write creative and effective offers
- Talk with your Usaj Realty Realtor about ways you can be competitive. Two examples include:
- Modern financing programs that allow you to buy a home with cash
- Get through the underwriting process with your mortgage lender to give your offer a competitive edge
- Being able to stay positive comes down to the expectations you have from the get-go. Knowing the market data before you launch into the process can help you with expectations of timelines, tactics, and probabilities. Your Usaj Realty broker will help walk you through your exact home criteria and set you up for success as you begin your home buying journey.
- Getting clear with your lender on what you can afford is also a huge first step when beginning the home buying process.
If you are a home seller, consider selling sooner rather than later:
- Homes are currently getting an average of 20 showings during the first week of being listed.
- Our region’s current list-to-sell ratio is 102.09%, meaning that the average home sold for over the asking price!
- According to CoreLogic, Colorado homeowners gained an average of $78,000 in home equity when comparing Q3 2020 to Q3 in 2021.
- Even if your home isn’t “perfect” or you feel like it’s not ready for the market, with only 1,184 homes for sale across 11 counties, buyers are going to be more willing now than ever to buy a home that needs some updating
Key Quotes from DMAR:
- “The market ended with month-end active listings at a historic low of 1,184. To put into context, that is over 10 times less inventory than normal.”
- “Based on the historic low inventory and current market demand, prices will likely skyrocket in the next three months. With the low inventory and competition, we are expecting prices to greatly increase in the first half of this year.”
- “In this market, creating a list of “must-haves” and “deal-breakers” can help to direct your decision-making even more.”
A quick look at what happened in January:
- Denver metro’s active listings available at the end of the month declined by -19.84% over last month
- The January median sale price was $540,000 up 18.68% from last year
- The average home spent 20 days on the market during January, 7 fewer days than the same time last year
- The average price of a single-family detached home is currently $689,711 an increase of $60,552 from the same period a year ago
Average Interest Rates by Year in Denver
|Average Interest Rate||5 %||4.7 %||4.4 %||3.6 %||4 %||4.2 %||3.8 %||3.7 %||4 %||4.6 %||3.9 %||3.1 %|
courtesy of Megan Aller | First American Title
The number of active homes available in Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park Counties from August 2017 – January 2022 Source: DMAR | Graph by Usaj Realty
During these unprecedented times, Usaj Realty would love to carefully assist you with finding your next place to call home, or selling your current property. Our acumen, attention to the market, and negotiation skills will all go to work in order to advocate for your goals. Email us at info(at)usajrealty(dotted)com or call 720.398.2999 (m). We measure our success by the happiness of our clients!