The Denver real estate market has favored sellers for many years now, but it’s been showing signs of cooling in some areas since last fall.
The number of active listings is up overall, we’ve seen price drops on more listings, and the median number of “days on market” is up — meaning it takes longer to get to a contract.
Higher days on market is occurring in particular for listings that are priced too high. Buyers are savvy and have gotten more selective, and many of them won’t offer if they feel it’s overvalued.
Buyer Markets in Denver and Across the West
This nifty map published by the housing economists at Trulia shows that many zip codes in Denver are expecting a shift to favor buyers this coming year. They used “days on market” and price cuts as primary indicators to determine which way the market is going.
We still have a few areas favoring sellers, mostly on the west side of the metro area, including Evergreen, Sedalia and 80403, which includes Golden and Arvada.
Of course, conditions can vary from neighborhood to neighborhood within a ZIP code, but these are the big picture trends happening in the Denver Metro area — and also across the west side of the country.
Seattle has seen the strongest shift to buyers, probably because people realized they were paying too much to live in such a dreary climate.
Is Denver Real Estate Still a Good Investment?
This is healthy. Denver has gotten popular, but it also got expensive quickly, and affordability has become an issue for many. Right now, it’s good to see that demand is keeping up with the higher inventory, which is up 54% in Denver over last year’s first quarter. Buyer’s still have to move quickly, but things area little less hectic than they were a year ago.
In another good sign for Denver housing and the health of the real estate market, this study reports that the rate of new homes construction is up, though builders are being careful not to overbuild, which cost them dearly in past markets. They’re also building more for first-time home buyers and lower price points, where supply is most needed.
So builders have confidence but are not overbuilding, and median prices are still increasing, but less dramatically. Denver has good fundamentals, with a healthy, diversified economy and a strong job market. While the market may be shifting to favor buyers, I expect we’ll see a stabilization rather than decline. We should continue to see appreciation, but perhaps not in the double-digits that we’d gotten used to since 2013.
And as the market adjusts, Denver’s many advantages will continue to draw young professionals and families, while many older folks choose to stay for the long haul and age in place in Denver.
Buyers have a little more leverage. Interest rates are low and supply is picking up. I’ve seen some really nice listings out there and they’re taking just a little longer to go under contract, so while buyers must still have urgency, they have a little more room to negotiate. Ready to jump in the Denver real estate market? Get in touch and let’s chat.
Sellers want to be careful with pricing. If a property is overpriced, it’ll sit, and if it languishes for too long, it can be hard to recover. Simply put, the place should look right and be priced correctly from the start in order to attract the right buyers the first time around. Have a question about your home’s value or are you considering selling? Get in touch or call 720.514.9540.
Need help with your next real estate move?
Agents at A Better Way Realty help you look at the big picture, to help you achieve the best financial results from your real estate moves. Email or call 720.514.9540 and let’s talk soon!