It’s true, the market is still the hottest it’s been in ages or in some places, has ever been. Rents are increasing astronomically pushing renters to buy properties and pay more and more than what the properties are actually listed for. Sellers are just setting out signs and getting multiple offers on their listings. It’s truly crazy out there. Real estate agents are writing multiple offers on different properties, filling out escalation clauses, buyers are offering more than the listing price, forgoing inspections and offering cash above appraisal prices. With the market in this state, it’s interesting that the stats pulled from RECOLORADO.COM still show that the trend over the past 5 years is that the average actual purchase prices are less than the average listing prices in Littleton, even for 2015 so far. See below:
"Based on information from Metrolist®, Inc. DBA RECOLORADO® for the period 7-7-2010 through 7-7-2015 Note: This representation is based in whole or in part on content supplied by Metrolist®, Inc. Metrolist®, Inc. does not guarantee nor is it in any way responsible for its accuracy. Content maintained by Metrolist®, Inc. may not reflect all real estate activity in the market.”
The graph shows the average difference in prices is as follows:
2010-$45,000, 2011-$50,595, 2012-$47,741, 2013-$46,200, 2014-$48,404, 2015-$40,500
So you see, the difference in prices has fluctuated up to $10,000 in certain years, but the average List prices have consistently been more than the average Purchase prices in Littleton.
Many Sellers wanting to sell their homes have to be aware that just because the market is hot and crazy in Littleton that Sellers are still, on an average, selling their house for less than the list price. So even in this market, sellers and listing agents still have to be reasonable. Here are some things to consider. Is the area desirable? Are there issues with the property? How does the roof look and how old is it? Have there been structural issues? Have there been water issues? Are there electrical and plumbing issues? How outdated is the property? Have there been any improvements?
Buyers also have to be aware of many things. How much do they qualify for and can they provide cash if the house does not appraise? Does it make sense to pay over the appraisal price? What happens if they have to move in a year? What will the market look like and can they re-sell without having to bring cash to the table? If the inspection does not pan out well and the Seller refuses to fix anything, can the Buyer afford to take care of it financially after spending money on down-payment, closing costs, and all those wonderful little costs that creep up when moving? Many of these items influence what Buyers will actually pay.
The recent stats in the Stony Creek, Littleton area show less of a difference between average Sold price and average List price. It’s hard to say why, but it appears that Sellers are on average getting closer to the asking price, and even more than the asking price. That’s good news here in Stony Creek, so keep selling!!
If you or anyone you know is looking to buy or sell their home, it would be my pleasure to help. Just call 720-260-1180 and ask for Julie!
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