It’s gotten a little tougher recently for home buyers in the Denver metro area. Here’s some insight into why, plus some advice for sellers and buyers. Scroll for more details, or watch the video.
Over the last few months, our metro Denver area real estate market has been a little slower and it’s been easier for buyers to find homes on the market. But we saw a change to that in October, and I wanted to dig into why.
Pressure is Up on Buyers as Inventory Drops by 10%
It boils down to the age-old concept of supply and demand. In October, the inventory numbers dropped by slightly more than 10%. (See the column titled “Prior Month” for New Listings in the image below.) This means there were 10% fewer homes coming on the market to take the place of those that sold. Fewer new listings means lower inventory. With demand not slowing, we know that competition for those homes will rise. That increased competition is especially strong for move-in ready homes.
Implications for Sellers
What does this latest market development mean for sellers? To get the best price for your home in the shortest timeframe, you’ll want to be sure your home is priced correctly and is as close to move-in-ready condition as possible.
Price Your Home Correctly
The overall market statistics for October tell us that properly-priced homes spend an average of 14 days on market. Overpriced homes, by contrast, linger on the market for around 60 days. According to Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. “Of the closed transactions in October, 40% had to make a price reduction.” Work with your agent to set a realistic sell price for your home.
Be Move-In Ready
Move-in-ready homes are the ones most in demand across all price ranges. If you’ve been reading my blogs for any length of time, you know I’m a huge proponent of staging homes for sale. (It’s a service I provide to my clients at no additional charge.) Staging helps potential buyers see themselves in your home and fall in love with it. And if you can, make some minor updates to increase your home’s appeal. Consider things like refinishing tired wood floors or getting the place sparkling clean with the help of a professional.
Implications for Buyers
Understand that things have changed with this drop in inventory, and be prepared to jump when you find a home you really like. Now that we’re in the chilly, gray months of the year, it’s less likely that something better will come on the market until spring.
Time to Buy or Sell? Then It’s Time to Call Me!
No matter what your goal is in regard to real estate, I can help you achieve it. With 15+ years of experience, advanced training, and consistent 5-star reviews, I am perfectly positioned to guide you to a successful closing as either a seller or buyer. Give me a call at 303-204-6494.