The Denver Real Estate Market is Learning to “Fly Solo!”
Real estate markets across America were propped up with government stimulus incentives during the first half of 2010. In these early months of 2011, the markets are learning to fly on their own. In the long run this will be healthier, and will give us a true picture of real values.
Buyers and sellers seemed to be mostly on hold in January, after a small surge of activity at the end of 2010. New listings/homes for sale only increased by about 100 from the previous month, and the number of Under Contracts saw a major decrease, down 43% from January 2010. Again, remember that the tax stimulus was in full effect last year, making January 2010 much higher than normal. Homes Sold/Closed in January were also down approximately 24% from January 2010. All of the above comparisons include Single Family Homes and Condos/Townhomes.
It appears that a sleeping giant called the Denver home buyer is slowly waking up now that the Super Bowl is over, and the post-Christmas blues have begun to wear off. The Groundhog saw his shadow, so officially Spring is nearby. The Spring home buying market should be close by, as well. Home prices seem to be bouncing on the bottom, so the best opportunities for buyers (along with the lowest interest rates) is right now, before the Spring rush begins and rates increase further. Sellers should quickly prepare their homes for sale, as time on the market has increased year over year.
Timing Is Important!
If you’re considering listing a single family home or condo for sale in 2011, it’s time to stop thinking, and start the process. Last year the average residential property was on the market for over three months before selling – which doesn’t include the properties that were taken off the market prior to sale. This means that even if you list your home today, it will likely be nearly mid-year before you close.
Timing is critical when listing a home. In 2010, almost as many residential properties were sold March through June as were sold during the other months combined. Waiting until later in the year to list your property may mean missing out on the hottest selling times of the year.
Advice for Buyers
No one knows exactly what’s going to happen to home prices. Today’s prices may be the most affordable for the foreseeable future. With both prices and interest rates low, now is a great time to buy. Begin your search before the Spring weather attracts more buying competition!
Advice for Sellers
Based on the number of active listings, there is an inventory of over five months for single family homes. Your home needs to go on the market now, to ensure that it’s available to buyers during the peak shopping months of March through September.
This market is not on auto pilot right now, so prepare yourself for a little turbulence. Your local experts at the Bandy Team will help you land safely! We'll show you the best homes in the Denver metro area, including houses in Aurora, Parker homes, and real estate in Castle Rock. Call us today!