Ready to Make Your Move?Market Update, April 1, 2021
If you read our updates, you know we’re in a seller’s market, but you may be wondering what we mean when we say that.
Housing prices respond to supply and demand. Right now, there’s high demand for homes and not much supply. In real estate, we often look at “months of supply” or “months of inventory.” This is a measure of how long it would take to sell every home for sale now, without any new homes coming on the market.
A market favors sellers when there are six months of supply or less, and favors buyers when there are more than seven months of supply. If there are six months of supply, it’s a fairly balanced market.
Right now, in most parts of the metro area, we have about three weeks of inventory! This means sellers have an edge when it comes to negotiations and homes are appreciating. Buyers are competing to get the homes they want and creating the most attractive offers they can. Sellers are getting prices and terms that work for them.
Everyone is asking – what do we expect in the future? Will prices fall? We don’t think so.
Take a look at this graph that shows average area home prices since 2009. Prices go up and down, certainly, but they’ve risen pretty steadily for a long time and we don’t see the long-term trend changing. Home prices may dip for short periods here and there, level off, or rise more slowly, but we don’t think they’ll fall. No one can know precisely when the market will hit a peak or reach a bottom. With interest rates creeping up, now may be a perfect time to make your move.
Join our clients who save thousands when they sell.
Last year, we saved clients more than $225,000 in commissions! Call David and Tom at The Principal Team at (720) 782-2468 for details about how you can earn thousands more when you sell your home.
Metro Denver Real Estate Market Activity
[one-half-first]During the last week:
New Listings – 901
Back On Market – 129
Price Increase – 170
Price Decrease – 243
Pending – 1678
Withdrawn – 108
Closed – 1660
Expired – 180
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Based on data from REColorado®[/one-half-first][one-half]Previous Week:
New Listings – 1234
Back On Market – 164
Price Increase – 223
Price Decrease – 173
Pending – 1344
Withdrawn – 71
Closed – 1459
Expired – 143[/one-half]
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Trends in Metro Denver
- Home Prices
- How Long It Takes to Sell a Home
- Prices Per Square Foot
- Showings Until Pending
- Active Listings
- New Listings
- Closings
Local Real Estate News:
Colorado homeowners accumulated an average of $32,000 in home equity last year