We did it again, Inventory is down for the 8th straight month. As of the end of February, we have just 8,082 single family homes available for buyers to view.
On Friday last week, our office set 101 showings in one day. We had to take a fire extinguisher to the phones at the end of the day. The most showings I can remember the receptionist setting up on a busy Friday during the heyday was about 72, and that was with about 50% more inventory than our office is carrying now.
The low inventory is translating into showings, financing is loosening for most buyers, and rates are low. If you’re an FHA buyer looking for a condo, you’ll have trouble. Most Homeowner Associations have let their FHA approvals expire and haven’t renewed them. We currently have 2,004 available condominiums and many of those would qualify for an FHA loan based solely on price point.
Average days on market are down, prices are increasing, under contracts have soared – particularly for “pending” sales – meaning proprieties waiting for short sale approval from the lien holder. This is the hallmark of a recovering market. Buyers, get out there and find something! Even with less to choose from this is an incredibly opportune time to invest in real estate in Denver.
If you’re toying with the idea of selling, get your house on the market quickly. Soon enough, you’ll be competing with all of the other sellers who figure this out. And don’t assume you can tack on 10% to the last neighborhood sale when pricing your home. We’re not there yet. Realistic pricing is a large part of what’s driving our market, in conjunction with the low inventory. The sellers who are selling are paying close attention to where they need to be priced. They are not overpricing and are using the past 6 months sales in their area to carefully analyze where they should price their home. They’re listening to the brokers.
If you have a house to sell in Denver or would like to look for your next landing pad, contact Gretchen Rosenberg for more information on the current Denver real estate market.
Meet the Author
Libby Levinson made the move into real estate in 2005 and proudly joined Kentwood Real Estate – Cherry Creek in 2006. During her career, Libby has had the pleasure of helping a variety of clients navigate their real estate transactions: helping first time buyers find their starter home; coordinating the synchronized sale and purchase for buyers looking for more space; sellers looking to down-size; and assisting sophisticated investors with their next investment opportunity. She has also enjoyed working with buyers building their dream home from the ground up. Libby is known for her ability to smoothly facilitate the complex details of both the buying and selling process.
Libby’s real estate website is www.libbysellsdenver.com. She also writes for www.lifestyledenver.com.