By David Schlichter
For years, the Denver real estate market has been fantastic for sellers and challenging for buyers with buyer demand continually outpacing the supply of homes for sale. Whereas earlier this year it would have been surprising for a listing not to get multiple offers and sell for tens or even hundreds of thousands of dollars above the asking price, those situations have become significantly less frequent over the course of the last month.
Usually Denver real estate prices peak around June or July in any given year, but there are some signs indicating that the market may have already peaked for this year. From April to May, for example, prices dropped 1.1% month over month (even though they are up 15.6% year over year). In April, properties were selling for 6.4% more than the asking price on average, but in May that figure was down to 4.3%, and we expect that ratio to drop further in June. The average number of showings per listing has also been steadily dropping across the market since February.
We are still in a strong seller's market, and this is still a great time to sell a home. If you’ve owned a home in the Denver metro area for at least a year or two, chances are you’ve made a substantial profit on it--even if things are cooling off relative to the start of the year.
What is notable about this moment, though, is that some buyers are stopping their searches at precisely the same time that lots of sellers are listing (or preparing to list) their homes. This combination of a marginal decrease in demand paired with the marginal increase in inventory could represent a fantastic buying opportunity for buyers who are able to remain persistent with their home searches.
Whether you plan to sell and/or buy a home in the next few months or the next few years, you deserve a customized plan that reflects your timeline, your situation, and your needs.
Contact us today so that we can make a plan that is right for you!