Happy Valentine’s Day!
What’s Happening in the Denver Real Estate Market?
The Denver real estate market continues it’s powerful push toward record home prices. This month, we saw the average sales price of a Single Family detached home rise to over $500,000! Whoa! Over 10% more new listings came to market this month over last month and with the unseasonably warm weather, this trend will continue as we dive into our Spring and Summer markets! Now is a GREAT time to by as Denver is slated to see significant appreciation once again in 2018. Rates are ticking up a bit, so don’t wait too long.
How does this affect Buyers and Sellers?
Buyers: As rates tick up bit by bit, buyers will see a diminished ability to purchase the home you love. For every point rates tick up( from 4% to 5% for example) a buyer loses 11% in purchasing power. While many are on the fence about buying in this “hot” market, now may be the time to do so. Given the likely continued rate increases and the positive forecast for Denver’s home prices this year, you should look again at the timing of your planned home purchase. The short answer: Don’t wait. If you’re serious about buying this year, now is the time to make a move.
Sellers: The trend of “now is the time” continues. The Denver real estate market continues it’s above average appreciation rate. 2018 is projected to see an additional 6%-11% appreciation rate. However, there is no guarantee this will happen. If you’re looking to maximize your return on investment, now is a great time to do so. If you wait, rate increases may effect buyers’ ability to close on your home.
Where do we go from here?
Annually, the outlook for Denver’s real estate market in 2018 is very strong. Whether buying or selling, now is a great time to consider it. Look for the inventory to increase bit by bit over the next several months, as well as the average sales price for both single family and condos to increase, at least through August of this year.
If you ever have questions about anything real estate related, I am an email or phone call away from answering them. Use Rhoads as your go to real estate resource. We are here to help.