Barry Kunselman | 303.887.0588 | Contact Barry
DENVER HOME SALES STARTS WITH A BANG
The Denver real estate market is off to a brisk start. With nearly double the number of new listings in January, an 89.27 percent increase in new listings from the month prior, the 2020 home buying and selling season is officially underway.
The selling season started early in Greater Metro Denver. These are some of the reasons why:
- Low rates, under 3.5% for 30 year fixed loans- Mortgage rates dropped to 3-year historic lows at the end of January which boosted purchasing power for buyers.
- 18 days above the average January temperatures -
- NO postseason Denver Broncos games - fans would have been rooting for the home team on weekends instead of readying their homes for the market or out house-shopping
DENVER HOME SALES IN JANUARY 2020
A 34.21 percent drop in the number of January closed homes and 35.19 percent drop in sales volume month over month is a reflection of our slower end of 2019. And as we usually see this time of year, the days in the MLS were longer, averaging out to 45.
Detached average home prices were down from their summer highs, but higher than they were at this point last year, up 6.86 percent year over year to $532,494. The picture is a little different for attached homes where we saw a 4.98 percent month over month drop in average price to $355,754, which is also down a bit. 0.37 percent from the same month last year That's the first January price drop in at least the past four years.
INVENTORY
We historically get a big influx in January and this year, buyers apparently buyer liked what they saw because they were scooping them up faster than they were coming on the market. In fact, 70 more homes shifted to a pending status then showed up as new listings, nibbling away at our end of month active inventory surplus.
The bulk of detached homes for sale at the end of the month were in the $500,000 to $749,999 price range. The most choices of attached homes could be found in the $300,000 to $399,999 range. Buyers will find the most opportunity to negotiate for both detached and attached homes over $1 million where the months of inventory were at 6.92 and 8.50 months, respectively. The seller was in control of negotiations in all other price ranges.
Homebuyer Tip
“Well, if you’re planning on buying a house, home prices might look intimating. But, remember, just because you saw house prices that other people in the nation are buying, that doesn’t mean you should look for a house in that price range. Instead, focus on your own budget. Don’t worry about the pricing trends. A good real estate agent can help you find a home you love that’s within your budget.”- Dave Ramsey
Mortgage rates are still hovering near all-time lows and buyers have an outstanding opportunity to lock in at low rates. Low-interest rates allow a buyer to maximize their purchase potential and ultimately make the cost of homeownership more affordable. It helps investors to maintain lower costs and better potential cash flow.
Retired? Over 60 years old? There’s a very good chance that you will be able to get a mortgage. Especially with the big down payment that you can put down because you're selling your current house.
Homeseller Tip - It’s going to be another great year for sellers!
Low inventory keeps Denver in a strong seller's market. This is a good time of year to sell because buyers remain hungry for inventory. If you're not up for putting your home on the market this winter, use your extra time off to get your home ready to hit the market in spring.
While the numbers listed above represent the market, it may feel differently depending on which part of the city you are in. I'd be happy to compile the neighborhoods you're interested in learning about and email the numbers to you. Accompanying the statistics for each specific neighborhood is a detailed description of the area so you can see if that neighborhood sounds right for you. Let me know which neighborhoods you'd like and I'll gladly send them to you right away.
FORECAST
February 2020 is forecasted to be colder than average with multiple bouts of snow in the metro area. Will sellers continue to feel the buyer love this month or will the winter chill make them feel like a singleton on Valentine's Day? Stay tuned for next month's market update
GET IN TOUCH
It's my job to help you and all of my clients make smart housing decisions. The stats are a phenomenal indicator of the market, but they're just the start. I'm happy to share my expertise to tell you the stories behind the numbers.
If you need to discuss the numbers above please don't hesitate to call/text 303.887.0588 or email me at barry@porchlightgroup.com!
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