What, am I crazy? Just hear me out.
If you are thinking of selling your present Denver home and buying up, read on. Say your home is worth $400,000 and the home you want to buy is $600,000, and we've had a 5.4% drop in prices from 1 year ago. Your home lost $21,600 (ouch), but the one you want to buy lost $32,400. You're actually $10,800 ahead if you sell now and buy up. If you are selling, this is not the time to price your Denver property with a "hopeful" price tag. The market is rejecting properties that aren't priced competitively for their condition and location.
Actually, the market is reacting to a tension that has been slowly building for the last 5 years; excess inventory and decreased demand. It was bound to happen. The good news is that Denver led the nation in a softening of the housing market, so should lead the nation in a recovery.
Denver Home Buyers - if you can scrape money together from wherever, NOW is the time to buy.
Until next time,
Bob Bandy
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