End of Summer Market Update

This past summer was one for the books! Record-breaking buyer demand paired with low inventory led to dramatically higher prices, significantly lower days on the market, and lots of bidding wars.  Here are a few key stats:

• This summer's average sale price in the metro area was $637,879, increasing 20.8% over last summer's average sale price.

• Average days on market decreased more than 50% YOY to a mere 12.3 days this summer.

• Homes sold for an average of 102.7% of the asking price this summer.

We've never seen as competitive of a market as the summer of 2021 was.  Buyer demand was through the roof, bidding wars were more competitive than ever, and there continued to not be enough homes for sale relative to the number of homeowners ready to buy.  Whereas many regions, especially the most densely populated urban cities like New York and San Francisco, experienced net migration out of their metro area, Denver experienced a net inflow.  

Buyers often needed to partially or fully waive customary contract contingencies such as the property inspection and/or appraisal to be able to make their offers attractive in the highly competitive environment.  Sellers, on the other hand, were often able to cherry-pick offers that resulted in high prices and an unusually high degree of certainty, with some buyers even making some or all of their earnest money non-refundable the minute an offer was accepted.

As the summer starts to wind down and we enter fall, though, prices are cooling, properties are lasting longer on the market, and the closed price to original price ratio is dropping.  This seasonal cooling is common for this time of year.  With interest rates remaining very low, now could be a great time to sell your home to catch the tailwinds of the exceptionally high summer prices while locking in a replacement home at a very low interest rate, with less competition, and a potentially lower purchase price. 

The award-winning Schlichter Team helps sellers and buyers to navigate the complexities of the Denver-area real estate market on a daily basis and is available to help additional clients with their real estate needs.  If you have specific questions about your home value, the market activity in your neighborhood, or anything else real estate-related, please be in touch today!