Attention anyone who’s currently hunting for a Denver home. The buyer’s market is on its way out, home prices are starting to rise, and you might just find yourself in a bidding war for the house you’ve chosen.
The last time bidding wars were common was back in 2006; then the buyer’s market took hold and most Denver home sellers had to settle for whatever they were offered, including lowball bids. But real estate markets in places like Denver, Seattle, Boston, and Washington DC are reporting that bidding wars have begun to happen again, especially in the lower price ranges.
Why the change? According to the National Association of Realtors, sales of existing and pending homes have risen more than 8 percent compared to this time last year, there are fewer homes for sale now than in the last six years, and the improving job market has pulled more potential homebuyers back into the mix. Trulia Inc. reports that low mortgage rates and decreasing home values now mean that buying is a better option than renting in 98 out of the 100 largest metro areas.
It comes back to that basic economic principle of supply and demand. As the supply of available homes decreases, larger numbers of buyers are interested in the same properties—and the bidding wars commence!
Moody’s Analytics Chief Economist Mark Zandi recently stated, “The decline in unsold listings and vacant homes and the increase in rents presage better times ahead for single-family housing.” This is fantastic news for Denver residents and for the housing market in general.
So if you’re looking for real estate in Denver, don’t wait too long to make a move—and be prepared for competition.
Let the professionals at the Bandy Team help you buy or sell a Denver home. Contact us for a no-obligation consultation. If you’re thinking about buying a home in Denver, we can show you some terrific properties in Denver, including homes in Cherry Creek, town homes in Lowry, and real estate in Stapleton. You may also be interested in horse property in Elizabethor Parker horse property, and a variety of Parker golf course homes in Canterberry.