Why Now Is A Great Time To Sell Your Home In Denver
Between the ongoing pandemic and the hectic news cycle, 2020 has been a tumultuous ride thus far. With everything that’s been going on, it’s easy to understand why you might want to put off your home selling plans until the spring. However, we’d argue that the current market conditions present a perfect opportunity to sell your home in Denver!
While the peak season for selling real estate is almost over, you can still have an amazing home sale this fall and winter. A number of key housing market factors are currently in alignment in Denver, making the climate ideal for both home sellers and home buyers. And if you don’t at least look into the possibility of selling your property, you might end up regretting it later down the road.
If you’re interested in selling your home in Denver, now is the time to start the process. Let’s dive into the reasons why and take an in-depth look at the current real estate market.
Demand Is Exceptionally High
When the pandemic hit the U.S. in the early spring, Americans hunkered down indoors to quarantine. Prospective home buyers everywhere had to put their real estate plans on hold as the country adjusted to the new norm. This has undoubtedly led to a build-up of demand for real estate in Denver. As businesses reopen and consumer confidence continues to rise again, it’s clear that demand for housing in Denver is incredibly high.
Let’s put this in context by looking at some stats surrounding summer home sales in Denver. According to the Colorado Association of Realtors (CAR), June broke a second straight month of record highs for pending/under contract properties across the metro area (7,122 single-family and 2,506 townhomes/condos). Those pending/under contract properties reflected a 30% increase from June 2019. It’s also worth noting that sold listings spiked from May to June, jumping 64% in Denver and across the state.
As the summer has gone on, these numbers have only continued to increase. August saw a 40.5% YOY increase in pending/under contract properties. And the overall market supply in the metro area dropped by 48.4% YOY in August.
These spikes in property sales and drops in market supply indicate that homebuyers have very high pent-up demand. As there’s greater demand for real estate, you’ll have no problem getting your home sold quickly and for an impressive ROI.
Average Sale Prices Are Rising
When you sell a home in Denver, it’s likely that your main priority is on the profits from the home sale. Fortunately for you, a recent trend in the Denver real estate market has shifted into your favor.
According to an August article in the Denver Post, the average listing price and the average sold price for homes in the metro area rose by 3% in July. And those average prices have continued to steadily rise in August and September. In fact, the Denver Metro Association of Realtors (DMAR) has reported that the average price of a single-family home in Denver rose to approximately $600,000 in August! That price increase is 7.68% higher than in June and 9.92% higher than in July 2019.
These rising sale prices can be attributed to two factors: an abundance of eager homebuyers and low market inventory. Even as we say goodbye to the peak selling season, these rare market conditions are currently projected to carry over into the fall.
Buyer Power Has Increased
For many people, homeownership has often felt like a distant dream due to financial barriers. Plenty of individuals can be scared of purchasing a home due to the financial burdens imposed by taking on a mortgage. However, those burdens can become lighter thanks to federal interventions.
According to an August MarketWatch article, mortgage rates have dropped to record lows on 8 separate occasions thus far in 2020. Of course, interest rates change slightly every day and can vary by the lender and the type of mortgage. That being said, current interest rates on mortgages are surprisingly low, with some options dipping below 3%.
These lower interest rates benefit buyers by making a home purchase more affordable. Thanks to this increased buying power, your home will see even more prospective buyers throughout a given week.
Consumers have pent-up demand, home prices are rising, and buyers can leverage record-low interest rates. All of these signs add up to the conclusion that now is the ideal time to sell your home in Denver. And you need to remember the first rule of the real estate market: what goes up, must come down.
These market conditions won’t last forever and plenty of uncertainties may influence the market in the coming months. From the ongoing pandemic to the upcoming election, many things can change these ideal real estate conditions. You can, of course, delay your home sale decision until the spring of 2021. However, you may risk missing out on some of these terrific seller advantages.