Barry Kunselman | 303.887.0588 | Contact Barry
We typically expect to see inventory and buyer activity decline in the 4th quarter of the year. Denver home sales usually peak mid-summer around June or July and will begin a seasonal slide hitting the lowest number of both new listings and the number of homes sold in December or' January.
This year we are enjoying an extra bump of buyer activity due to low-interest rates. Interestingly it’s taking some additional time for these units to make it from a contract being accepted to the closing table. In a closer look at the data, we found that the time to close in the 2nd half of the year is longer than the 1st half of the year and we believe that is due to an increase in offers being written with contingencies. Good news for those buyers who need to sell before they can close on their next purchase, the opportunity is great to make a move before the holidays set in.
For the past few years (almost a decade now) we’ve all enjoyed the benefit of historically low mortgage rates. They are still hovering near all-time lows. 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.
Rates have seen a modest uptick since their early-September lows, reflecting declining recessionary fears and an improved outlook for the global economy.
Homebuyer demand remains strong heading into the usually slower season despite economic uncertainty.
When there is less than a 6-month supply of inventory available, we are in a seller’s market and we will see greater appreciation. Inventory of Denver homes for sale is still well below the 6-month supply needed for a normal market. In 2019 Denver is experiencing another Extreme Seller’s Market. The toughest months for buyers were from March through May, with more options available beginning in June through November.
Detached single-family home active inventory for October down by -13.4% from the previous month and down -18.4% from the same month one year ago, 4,941.
Is it a good time to sell?
Extended weekends and family time take precedence over buyers searching for their next home. Foot traffic will be lighter in open houses, showings will pull back to their lowest point of the annual cycle, ultimately the fewest contracts are written over the next few holidays. For the week of Thanksgiving, the week between Christmas and New Year’s Day will lead to a longer time on the market for sellers.
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.
If you like numbers and think this would be good information for you, let me know which neighborhoods you'd like and I'll gladly send them to you right away.
Is it a good time to buy? YES!
Buyers will enjoy some of the least competitive weeks to make a purchase during the holiday weekends which increases their negotiating power.
Interest rates are predicted to rise📈 Home prices are predicted to appreciate💸 NOW is the time to buy🤝
Need another reason to buy now? More buyers of homes under $400,000 will be able to save on the cost of an appraisal. For the first time in 25 years, federal regulators have approved a plan to allow more properties to be subject to an evaluation instead of an appraisal. This will save some borrowers hundreds of dollars in the buying process.
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 firstname.lastname@example.org!
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