Last month signaled the start of Denver’s predictable spring busy season for real estate… and what a busy season it’s been! April saw decreased days on market and growing home prices. Spring through fall of 2018 is cueing up to be just as speedy as the past few years - buckle up for a brisk ride.
With the market going strong, it may seem like it's status quo from here on out. However, one important factor promises to change Denver's strong seller's market.
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Denverites are staying put
Despite a healthy increase of inventory since last month, homes on the Denver market have decreased in quantity by almost 4% since this time last year. Given the lack of Denver homes for sale recently, this is no surprise and is likely driving the average home price to another historical high ($543,058 for detached homes and $487,082 for both attached and detached); with low supply comes higher prices.
Homes are flying off the shelf… still
Whether you’re on the search for your new home, putting your existing house on the market, or planning to do both, average days on market impacts you greatly. Homes spent an average of 20 days on market last month. This swift selling rate outpaces last year by 9% and last month by 23%. Homes are selling quickly, which demonstrates the strength of Denver’s seller’s market. Sellers can expect a relatively quick home sale process. If you’re a buyer, be prepared to stay on your toes and make strong offers when you find the right home for sale.
A change a-coming?
With mortgage interest rates slowly rising, homebuyers will continue to have incrementally less buying power; if their monthly mortgage payment is higher due to interest, they’ll have less to spend on the actual cost of a home. Though the Denver real estate market hasn’t seen the impact of higher interest rates yet, experts foresee a change coming. The mortgage factor will likely make an appearance in the next year or so. How will it reveal itself? No one knows...