What’s Going On What This Wild Market?!
This holiday season doesn’t call for hanging out on the couch with your pups. It’s all about being hot on the home search! While this is usually my favorite time of year for buyers, 2020 shows us something slightly different, a complete anomaly.
Historically, the winter months have lower levels of inventory, but also a smaller buyer pool. I love the odds of looking at fewer homes, but also having less competition. On the flip side, spring/early summer has the most homes on the market and the largest pool of buyers. Thus the multiple offers, well over asking, and pulling out all the contract stops.
Well, folks, this winter is showing us that springtime isn’t stealing the show any longer. November ended with only 1,755 active homes on the market. Like, THAT’S IT. We are down over 33% in active inventory from the past month and down over 63% year over year. What does that mean? It means there is a massive housing shortage. With such demand, the average home price for a single-family is hovering right around $615,000, and about $391,000 for attached homes (condos and townhomes), the Denver market continues to hold strong.
Being in the market with active buyers in a wide range of price points, I can speak to the extreme lack of inventory first hand. With all three of the most popular price ranges, $300K-$399K, $400K-$499K, $500K-$750K, each of these is sitting at less than 0.3 months of inventory. A balanced market is 6 months of inventory at any price point.
While we usually see such low months of supply in the Classic Market (300-399K), we’re seeing a pinch at even higher price points this year. I think insanely low interest rates and the need for more post-quarantine space is pushing move-up buyers into those higher-priced homes and leaving the market scrambling for inventory.
Sellers, listen up! We need you more than ever! If you have played around with the idea of relocating, buying that dream home you’ve been eyeing, now is the time to jump. With multiple offers driving asking prices WAY up, competitive contracts meeting all the seller’s needs, and oh so much demand, your home could be worth quite a bit more than you think! So, make those little home renovations, touch up your paint, and get your home listed!!
Buyers, HANG IN THERE!!! Writing a handful of offers will be the new normal, so don’t let that get your spirits down. Do prepare to look at homes well under your max budget. That way, you have room to come in over asking. Understand that you will need to write a contract more competitively than ever before. But know, there is always the right home for you!
As we get ready for a new year, I am excited, nervous, and ready to see if or how this Denver market will change. For now, I’m scouring the MLS for my buyers, showing new listings the moment they hit the market, and hustling my butt off to get offers accepted!