Mike Shanahan Sells His Mansion and Makes an Off-the-Field Record!
Local legend, and former Denver Broncos Head Coach, Mike Shanahan and his wife Peggy recently sold their mansion and made headlines. As reported by the Wall Street Journal and the local news, the property broke the record for the most expensive single-family deal ever recorded in Metro Denver, at a cool $15.7 million. No surprise that the home is in the affluent Cherry Hills Village near Denver. It’s 30,000 square feet, features six bedrooms, 13 bathrooms, a wine grotto, a bowling alley, a music room, a poker room, a racquetball court, a golf simulator, a guesthouse, and a 65-foot swimming pool. The massive price tag was the result of several price reductions, and the property was originally listed at $22 million!
How’s the Market Performing?
The answer to that question depends on what side of the transaction you’re on, and your price point. As we all know, the past several years have been an idyllic time to sell. Rising home prices due to a shortage of inventory has led to extreme appreciation over the past year. Home prices in 3Q21 were up a massive 16% from 3Q20, in addition to strong price gains from the preceding few years. For historical perspective, price appreciation averaged 6% per year from 1971 – 2018.
People always want to know, “Will this trend continue?” With such scarcity in the market and no substantial boost to inventory due to material, labor, and buildable-land shortages, it’s expected that price gains will continue for at least the next few years. The net result is that affordability will remain an issue and will, unfortunately, price out many buyers on the lower end of the market.
Info for Buyers
Fall/Winter May Be a Great Time to Start Your Search
If you’re a buyer, the fall/winter is typically the best opportunity you’ll have all year for purchasing a home. The end of the year is historically a slower season for real estate transactions. Although homes are still in high demand this year, the market is still following normal seasonal trends. As many buyers put their search on hold during the holiday season, savvy buyers typically face less competition during this time. Spring is generally the busiest time of the year for the real estate industry, so if you wait too long to act it’s bound to become hyper-competitive as early as January 2022! An additional benefit of purchasing a house sooner is using it as a hedge against recent inflation. As companies are struggling to keep up with demand for consumer goods, prices for everything from a gallon of milk to the cost of gas will see increases, at least into next year. Buying a home and building equity can be a great way to help you build long-term wealth and offset the cost-of-living increases seen around the nation.
Info for Sellers
The Ball is Still in Your Possession
The best time to sell will always depend on your personal situation, including finances, timeline, etc. If you must sell in the fall/winter due to circumstances related to family, space, job, or other concerns, then you shouldn’t have a problem getting your house sold, if it’s priced correctly! Due to the shortage of inventory, some investors are starved for projects. Many of the homes they would normally be able to flip for a profit have been purchased by entry-level buyers. Even if your home needs major repairs, there is most likely someone willing to buy your home if the numbers make sense.
If you’re not in an immediate hurry to move, you might want to hold off for a few more months, or even years. The spring is the optimal time to maximize your home sale returns, as demand always surges as the new year begins and the holiday haze wears off. As home price appreciation is expected to continue for at least the next few years, if not longer, you may even want to sit still and build up more equity before making that move you’re dreaming of. As always, I’m here to go over what the best plan of action may be to support you and your real estate goals!
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