The summer is typically the most active time of the year, when opportunities are at their highest for seller and buyers. If selling has been even a remote thought, now is an ideal time to take a closer look at our Denver metro real estate market.
Currently there are three factors that exist in our market that make it an opportune time for sellers.
Low Inventory. For the last few years and still continuing today is a below inventory of new and resale properties available for sale. Basic economics are in force – sellers are in the driver’s seat because tight inventory (supply) for an abundance of buyers (demand) puts upwards pressure on prices. Further, available properties get multiple offers and bidding wars.
The first quarter of the year in the Denver metro area showed a 1.2-month supply of houses. This means, if no more came onto the market it would take about 5 weeks to sell all the available properties. In a balanced market, there is a five-to-seven months’ supply. This is what the majority of the rest of the national market has.
Rising Rents. Statistics show that over the past year the metro area has experienced some of the highest rental increases in the country. These rising rental prices are motivating tenants to make the leap into home ownership.
Mortgage Interest Rates. The historically low mortgage rates are expected to be stable through the summer, making it easier for buyers to qualify. Many economists expect rates to rise by year end. Rents are rising so much more quickly that it makes sense for tenants to get into home ownership – they can get more home for the same monthly payment, plus take advantage of the taxes savings when owning.
The decision to sell your home isn’t to be entered into lightly. Contact a Real Estate professional to discuss your concerns, goals, and the market in your specific neighborhood. I am never too busy to help you with your Real Estate needs.