Denver Real Estate News – September 2021

Buyer Demand is Starting to Cool Down   Aside from hard to avoid high temps and excessive smoke from nearby wildfires, things are finally starting to cool down a bit in the Mile High City. As predicted earlier this year, there has been a gradual cool down of buyer demand. Many buyers have been frustrated by the lack of inventory or have just been priced out of the market due to rising prices and slower wage growth. This reduced buyer pool, along with an increase of homes brought to market last month, has allowed housing inventory to increase for a change. In July there were 4,056 active listings, which was up almost 30% from the end of June (3,122 active listings). We normally see an increase in homes on the market in the summer, but last month outpaced what we have seen historically. Still, average home price increases were still well above the historical average for a single month, coming in at 16.4% higher than the previous year. These price increases should slow into the fall and some prices could even decline later this year due to a large gap between housing prices and wage growth (See the graph below). Still a Strong Seller’s Market Despite recent changes, Denver is still a strong seller’s market. It’s just not quite as red-hot as it was at the beginning of the year. The average number of showings per active listing back then was in the astronomical: between 20-22 per home! The competition was fierce. To put that in perspective, that is almost double the historical number of people touring homes in January/February. In July, the average dropped to 12 showings per active listing, a number we haven’t seen in over six months of activity. Showing traffic is important because it is a sign of what is to come. This reduced traffic is a signal that fall will be a slightly easier time to buy a home.   Another indicator of this slight market cooldown is that homes are generally getting fewer offers. There are still multiple-offer situations. Often, there are 2-4 offers to choose from, but not always 10-15 like we were seeing at the start of the year. Buyers should have more of a fair fight when submitting offers. Many offers are also not as extreme as before. The average home is selling for around 3% over asking price, not 30% over asking like some from earlier this year. Sellers who know this will list their homes at more reasonable prices. This will ensure that they do not overreach and end up on the market for longer than desired and possibly have to reduce their list price. To help you see the intensity of demand for a given neighborhood, Your Castle has made a specialized map that focuses on the number of homes in a given neighborhood that sold at a premium over the past year. You can see the total number of homes that sold for over ask price, the percentage of homes that did so, and the average sales price in the area. For example, Wash Park East in the map sample had 35% of homes sell over asking price, and homes there sold for $1.57 million on average. Not too shabby! Compare those numbers to Wash Park West, where 63% of homes sold over asking price, and the average price was slightly lower at $885K. That area of the map is shaded orange to signify it had a fairly high percentage of homes selling at a premium. Now compare both of those neighborhoods to Athmar Park across I-25, where a staggering 70% of homes sold above asking price. There, the average sales price was $483K. That area of the map shaded red indicating that it was red-hot in terms of buyer demand. Homes there were selling well above asking price over the past year. These three neighborhoods are a good representation of the current macro trend in Metro Denver. Homes in luxury neighborhoods like Wash Park East had a significant number of homes sell for over asking price, but lower-priced areas brought far greater premiums. This is in large part due to a lack of entry-level homes for sale and intense demand.     With all of this information, an important thing to keep in mind is that demand can vary greatly in price point, size, location, etc. Please reach out to us if you are curious about what buying or selling would look like for you right now!  

What to do in Denver in September 2021

Enjoy these September Events and Fun!     September 10th to 18th: Denver Beer Week “Enjoy nine days of all things beer during Denver Beer Week! There will be tons of beer-related events in Denver, America’s #1 beer city! Head to The Mile High City for tap takeovers, rare beer tappings, firkin nights, meet the brewer events, beer & food pairings and much, much more.” Events & More Info!         September 11th: University of Colorado Buffs v. Texas A&M Aggies “This upcoming football game between the University of Colorado and Texas A&M University will be played at Empower Field at Mile High. The game, set for Sept. 11, is one of the top non-conference games on the college schedule for the 2021 season. Texas A&M finished 9-1 in the abbreviated 2020 season, along with a No. 4 final ranking in both major polls (Associated Press and USA Today/Coaches). Colorado was 4-2 and entered the rankings briefly after opening 4-0; CU coach Karl Dorrell was the Pac-12 Conference coach of the year by both the AP and league coaches and was the FWAA’s First-Year Coach of the Year as well.” Get Tickets!       September 15th to October 15th: National Hispanic Heritage Month “Each year, Americans observe National Hispanic Heritage Month from September 15 to October 15, by celebrating the histories, cultures and contributions of American citizens whose ancestors came from Spain, Mexico, the Caribbean and Central and South America.” Events & More Info!         September 17th to 18th: Westword Music Showcase The Westword Music Showcase is back…and bigger than ever. The city’s largest single-day festival celebrating Denver’s music scene has been transformed for 2021 and will take over the RiNo neighborhood and Mission Ballroom grounds with a two-day festival filling both indoor and outdoor venues with live performances by local and national musical acts, as well as visual and performing arts events, food and drink opportunities and more.” Tickets & More Info!       September 18th – 19th: Denver Arts Festival “The Denver Arts Festival is a fine art and fine crafts festival that continues to be dedicated to supporting Colorado artists while also showcasing a select group of national artists. The Denver Arts Festival holds its annual premier event at Central Park’s Conservatory Green Neighborhood. The fine art and fine craft exhibition feature some of Colorado’s and the nation’s best artists with over 50,000 people expected to attend.” More Info!         September 26th: Denver Broncos v. New York Jets “The Denver Broncos take on the New York Jets at Empower Field.” Tickets & More Info!             September 30th to October 1st: Denver Food & Wine Festival “Denver Food + Wine Festival is a multi-day extravaganza of food, wine and spirits events presented by co-sponsors Southern Glazer’s Wine & Spirits of Colorado and the Colorado Restaurant Association. The annual event benefits three community nonprofit foundations the Colorado Restaurant Foundation, The Denver Post Community Foundation, and Kroenke Sports Charities. Festival events feature the best in Colorado’s restaurants paired with the finest wine and spirits, dinners, tastings and culminating with the festival’s signature event, The Grand Tasting. Through these series of events, Denver Food + Wine Festival aims to highlight the hospitality industry impact and celebrate Denver as a culinary & beverage destination.” Schedule & Tickets!   Have a great September!

What to do in Denver in August 2021

Enjoy these August Events and Fun!      August 11-14: Cherry Creek North Food & Wine “Cherry Creek North Food & Wine is returning in a big way in 2021 to celebrate the diverse and sophisticated tastes of Cherry Creek North dining! This year, the event occurs over four days with an expanded lineup of intimate dining experiences, small bites, seminars and demos each day, all building up to the Grand Tasting sessions on Fillmore Plaza on Saturday. Guests can purchase tickets or a weekender pass for individual events to customize their Food & Wine experience to their own, unique tastes.” Tickets & More Info!           August 11, 19, & 26: Movies on McGregor “See your all-time favorite movies at our outdoor plaza all summer long on our giant LED screen. Open for all – No admission fees. Concessions available.” Schedule & More Info!             August 12 – 14: Dry Bar Comedy Live  “Dry Bar Comedy Tour LIVE is coming! The comedians who’ve generated over 1 billion online views and millions of fans bring their clean “Comedy For Everyone” to clubs and theaters on a nationwide tour. Come check out Dry Bar Comedy Tour, the internet sensation live and in person!” Tickets & More Info!           August 22: Reggae on the Rocks “LIVE NATION & BBC PRESENT Reggae On The Rockswith Rebelution, Steel Pulse, Inner Circle, The Green, Israel Vibration, Keznamdi, Judge Roughneck, DJ Mackle” Tickets!             August 26: Top Taco “At Top Taco, festival-goers sample unlimited taco tastes and signature tequila cocktails from some of the best restaurants in Denver, voting for their favorites to crown four categories of awards: Top Creative Taco, Top Traditional Taco, Top Vegetarian Taco, and Top Cocktail. With 5 stages of amazing music, creative tequila lounge areas, an entire tent dedicated to mezcal tasting and some of the best chefs and mixologists in the city, Top Taco has become the can’t-miss summer event in Denver – and always sells out.” Tickets & More Info!         August 28: Highlands Street Fair “Celebrate the summer and join us for the 38th annual Highlands Street Fair! Stroll along W. 32nd Avenue between Perry and Irving and enjoy live music, food from local restaurants, great shopping and more. Best of all, the event is free! Gather your friends or come with the whole family for a day of community and fun in the sun.” More Info!             August 28th: Denver Broncos v. Los Angeles Rams “The Denver Broncos take on the Los Angeles Rams at Empower Field!” Tickets & More Info!           We hope you have an incredible August!

Denver Real Estate News – August 2021

Competition is Beginning to Cool Off a Bit for Buyers Sweltering heat waves have nothing on the red-hot Denver real estate market in 2021. Median home prices have soared due to a mix of continued population growth, a lack of housing inventory, an increase in the cost of building materials, and would-be sellers’ fears about ending up homeless after they sell their homes. In June, the median home price in Metro Denver was $545K. This is up from $445K the same time last year. That is a whopping 22.5% increase! However, there is finally some good news on the horizon for frustrated buyers. It appears that the market is finally starting to let off some steam. One of the best leading indicators for market performance is the Number of Showings per Active Listing. It is essentially a measure of the current demand for homes. As you can see from our showing trends graph below, the number of buyers touring homes and condos has been on a steep decline since April. The June showing traffic was the closest we have come to the historical average all year, which is usually around 8 or 9 showings per active listing in the summer. Although June averaged 14 showings per active listing, steeply declining showings is a signal that the market is starting to approach the historical average for this time of year.     We are hopeful that as news headlines share the message that the real estate market is starting to get back to “business as usual”, it will motivate prudent sellers to list their homes as they had intended pre-pandemic. With buyer competition on the decline, they will most likely not be as worried about not being able to find their next home. Especially since they are now most likely over-qualified and sitting on a pile of equity from 2020/2021. Don’t forget, the averagehome in Colorado increased in value by $50K in 2020 (CoreLogic). Historically, Spring is the best time to sell, and late summer is the best time to buy. Relatively speaking, we think that will be true this year too.   For Buyers: Home Prices Are Not Likely to Decline, And Rents Aren’t Either Given the current economy in Denver, there is no indication that home prices will go down soon as many renters hope. In fact, local economic factors point to a gradual slowdown in home price appreciation, not a decline in home prices. That said, if you are a qualified buyer who is on the fence about buying a home, this summer may be as good a time as ever to strike. Especially now that buyer demand is starting to weaken compared with the start of the year, and sellers will most likely be encouraged to list their first homes and trade up. The sad truth is that for many buyers who have subscribed to waiting for a greener pasture where the home prices in Denver are low and options are plenty… they may be waiting for a long time. In the meantime, their rents will be ever-increasing, and they’ll be paying someone else’s mortgage payment instead of their own. Although rent increases slowed and even declined in some cases over the past year due to the pandemic, they’re already on the rise nationally, and back to pre-Covid levels (Zillow).     For Sellers: With Less Buyer Competition, Now May Be a Good Time to List Now that the seemingly never-ending buyer demand has started to ease slightly, this may be a good time to cash out and sell your home. Many sellers are staying put because they think they will be homeless once their home is sold. Now that buyer demand is beginning to ease and potential buyers are dropping out of the market, competition is not quite as fierce as it was at the start of the year. Plus, properties across the state appreciated in value by an average of $50K last year (CoreLogic). That additional equity could go a long way towards a down payment on your dream home. The appreciation per property in Denver is likely even more than $50K, especially if you have invested back into your home and/or put in some sweat equity to fix the place up while you lived there. Look up a valuation estimate online, then reach out to us for an in-depth market analysis. Denver is still a seller’s market, and as long as that remains the case, you have the upper hand in negotiations with buyers. We are here for you so don’t hesitate to reach out!  

Denver Real Estate News – July 2021

Some People Are on the Move! Things are heating up! Both literally, because Summer is officially upon us, but also figuratively when it comes to the pressure cooker that is our current real estate market. Unprecedented low housing inventory has persisted into summer. As of June 1, there were only 2,075 houses on the market in Metro Denver, down a whopping 71% from last May. This extremely low inventory has driven up average home prices. If you look at the Monthly Market Snapshot below, you can see that the average sales price is up 26% from this time last year. Some of that price increase is due to the lack of entry-level inventory on the market, with a larger amount of luxury homes making up the inventory than normal. However, if you look at the median sold price, which removes some of the extreme luxury outliers, the average sales price is still up about 22% over last year!     As you can imagine, many homeowners are jumping on the opportunity to sell their homes and cash out, sometimes moving to more affordable parts of Colorado, or even out of state. Others are afraid to sell their homes because they are fearful that they may not be able to find another home to move into. Many are content to stay put because they have seen an average equity increase of $47K in Colorado since last June (Source: CoreLogic). The high prices are also pushing some would-be buyers out of the market. Did the pandemic affect migration within the state? We were curious how the pandemic had affected migration within the state. The charts below show the net migration per county over the past 3 years. One thing to keep in mind is that these percent changes are based on the overall population of that county, which does vary. However, you can see that 2020 negatively impacted the net migration to Denver, Boulder, and to a minor degree, Arapahoe County. In contrast, Weld County and Douglas County have experienced an inflow of residents. Some of the mountain counties also had a positive net migration, such as Grand County and Summit County.   Another development to note is that buyer demand may finally be softening. According to the Wall Street Journal, the University of Michigan’s national “Buying Conditions for Houses” metric fell to its lowest level since the height of the pandemic shutdown, dropping even lower than April 2020. This will most likely lead to a gradual reduction in the buyer pool. Fewer buyers will likely lead to an eventual slowdown on average price increases. If you are a seller looking to capitalize on the current market, now would be a good time to list your house before this new trend takes full effect. If you are a buyer, this may herald a bit less competition in the future.     Low Inventory Still an Issue Even with fewer buyers looking for homes, there are still major obstacles to fixing the low housing inventory issue. These obstacles will most likely keep Metro Denver a seller’s market for some time. Commodity prices are one major concern since the materials to build new houses saw huge spikes due to Covid. Lumber is a great example. Prices per/yard have tripled since the pandemic hit. Part of this is due to shipping complications, an increase in home renovations, and a European pine beetle wreaking havoc and causing supply shortages. On the bright side, measures are being taken by the state to apply some of the Covid stimulus to affordable housing and new developments are being built. However, the scarcity of homes for sale is not likely to fully dissipate for years to come. If you’re thinking of making a move and want to find out the best strategy for your unique situation, don’t hesitate to reach out! We would love to support you in achieving your real estate goals.  

What to do in Denver in July 2021

Enjoy these July Events and Fun!     July 2 – Sep 2: Summer at Sculpture Park “Join us at Sculpture Park this summer for live music, food trucks and more!Produced by AEG in partnership with Denver Arts & Venue, Summer At Sculpture Park concert series features national and local live music events starting this July. Here’s the current lineup with more on the way!” Tickets & More Info!         July 3 to August 22: Colorado Renaissance Festival “Flash back to the 16th Century and journey through a medieval city. Enjoy full-armor jousting, tasty turkey legs, music and a marketplace featuring more than 200 artisans. Saturdays & Sundays only. Open Rain or Shine.” Tickets & More Info!         July 4: Park Hill 4th of July Parade  “The Park Hill 4th of July Parade is Denver’s largest Independence Day march.  It’s a traditional parade with everything you’d expect, including marching bands, floats, classic cars, costumed characters and much more! Held in Park Hill, one of Denver’s oldest, most historic and diverse neighborhoods, the Park Hill 4th of July Parade has a small-town feel right in the heart of the city!” More Info!         July 9 – 11: Colorado Black Arts Festival “The 35th Annual Colorado Black Arts Festival will return to City Park this summer! Join us for food, live music and performance, visual art, games and kids activities.” More Info!         July 9 – 13:“MLB® All-Star Week™ MLB® All-Star Week returns to Denver July 9-13, with fun events for fans of all ages at the ballpark and downtown Denver!” Schedule, Tickets, & More Info!           July 24: Summer Brew Fest “Cool down this summer with unlimited tastings of some of the best brews available!” Tickets & More Info!               July 28 – August 1: The 25th Annual Chicano Music Festival “The Festival is five days of live musical performances, workshops and recognition of influential artists of Colorado. The Chicano Music Hall of Fame celebrates the artists of Colorado whose work has advanced the appreciation, consumption, and continuation of Chicano music in Colorado. Since 2002, Su Teatro has celebrated artists for their achievements.”Tickets & More Info!         July 31 – August 8: Denver Days “Denver Days is back and better than ever | July 31st – August 8th, 2021. Denver Days is a citywide initiative created by Mayor Hancock in 2013 to help neighbors get to know neighbors through block parties, community events and volunteer projects. The City of Denver will help support your Denver Days event by providing free barricades or permits when you register your event.” More Info!         We hope you have an incredible July!

Denver Real Estate News – June 2021

It’s Unlikely That Home Prices Will Decline in Metro Denver At the end of May, the tide of the pandemic finally began to shift. Mask mandates have been lifted for fully vaccinated people, according to the CDC. Although this decision is controversial, for many it signals a return to pre-pandemic ways of life. As more people are vaccinated and sellers feel safer, it should help ease some of the low housing inventory. However, uncertainty remains in this market. We get asked daily, “Will home prices go down?” Let’s look at the historical data to see why we don’t think this is likely.   The graph below shows the historical price change for homes and condos over the past 50 years. You can see that the average Metro Denver home price has gone from about $50k to about $500k, an increase of 10x! However, after removing the effect of inflation,you can see that the average price 50 years ago was equivalent to $200k today. So, over the past 50 years, prices haven’t really gone up by a factor of 10. Rather, they have increased by a factor of about 2.5. A large part of that price increase is because larger and more deluxe homes were built over the past 20 years than in previous decades. So, what will happen over the next five years? The red dashed line is an educated prediction. Over the past 50 years, we have seen an average of 6% home appreciation. We think we will see a bit less over the next five years, so we added a forecast that prices will go up 5% per year. The average home price will probably be about $600k five years from now. If you’re a first-time buyer and can afford to buy a home, now is always a good time as prices drift steadily upwards, which could price you out of the market.   The next graph shows that the income per capita in Denver has gone up drastically over the past 50 years. If you look at the 1970’s, the average salary was around $8K. Currently it’s around $100k. Just like with home prices, you can see that’s an increase by a factor of about 10. However, removing the effect of inflation, the average wage in Denver win 1973 is equivalent to about $40K today. Without inflation the wages have a little bit more than doubled, and there’s good reason for that. This is a much more sophisticated city, with a much wider variety of jobs today than it was 50 years ago. Denver also has a highly educated workforce, among the best in the nation. So, what will happen to incomes over the next five years? We forecast 3.5% growth. Why? Because that’s what our wage inflation has been over the last 5-6 years, and it’s likely to continue at about that pace.   The third graph shows mortgage rates. Mortgage rates are exceptionally low right now. They are still close to 50-year lows, even though they’ve gone up a bit recently. This is another driving factor to keep the demand for homes high. What will happen to rates over the next five years? If you look at the average mortgage rate over the past decade, it was about 4.5%. Consequently, we predict that we will go from our current rate, about 3%, to about 4.5% over the next five years.   The fourth graph looks at the average mortgage payment, without inflation. This was built by looking at the average price of homes each year with an assumed 10% down payment. This shows what the principal & interest payment would be with the prevailing mortgage rate each year. You can see that the long-term average is about $1,550 per month. This is barely more expensive than the current average. So, homes are actually about as affordable as they have been historically, on average. What will happen to mortgage payments over the next five years? We think that is the question fueling of a lot of people’s concerns because they’ll probably be going up a lot! You can see on the chart the payments are going to increase from maybe $1,600-$1,700 per month today, to maybe $2,500/per month. This seems like a serious problem until we look at things from an affordability standpoint.   Finally, we will look at affordability. This is ultimately the metric that matters the very most! This chart was built by taking the principal and interest payment for an entire year and dividing it into the per capita income. This graph essentially shows how much of the average person’s income would have to be used to pay their mortgage payment. You can see that it is currently in the 30% range. The historical average is about 35%. Therefore, we are slightly more affordable now than the historical trend, on average. This affordability is a gift of historically low mortgage rates and higher incomes in Metro Denver. Right now, the market is stable. It makes sense that we are seeing higher prices from a supply and demand standpoint. Over the next five years you can see this metric will rise substantially. However, because incomes are also going up dramatically, it is not going to be as impactful as some people fear. Instead of these payments being below the historical average like they are currently, they will rise closer to the long-term average.   There is no reason in a market where we have low inventory, and favorable mortgage rates, for prices to go down. Based on the historical data, we think the market will see modest price increases for the next five years in the Metro Denver market. Please reach out if you’d like to discuss making a move in this market – our conversation will be focused around your specific goals!   Bonus – Here are some more market stats comparing April 2020 and 2021:

What to do in Denver in June 2021

Check out these June Events and Fun!     June 4thto 20th: Film on the Rocks: Drive-In “These movies will be viewed from the comfort of your car in the Lower South parking lot of Red Rocks, on our state-of-the-art 55ft. LED Screen. All tickets to Film on the Rocks 2021 include movie snacks that will be distributed to each vehicle upon entry. A bag of CityPop Popcorn, theatre size box of plain M&M’s, 7oz Twizzlers, and two Coke products (choice of Coke, Diet Coke, Sprite, Dasani upon availability).”Tickets & More Info!         June 5thto August 1st: Yoga on the Rocks “EXPERIENCE ONE OF THE MOST EXTRAORDINARY VENUES IN THE WORLD FROM A DIFFERENT PERSPECTIVE – DOWNWARD DOG. Start your day with an exhilarating workout at the most awe-inspiring venue in the world – Red Rocks. If you are under the age of 18, you must have a parent or guardian sign a waiver on your behalf. In order to provide a touchless ticketing experience, tickets are available online only. No drop-in sales at the door. Participants should not attend if they aren’t feeling well or may have been around those who are sick.” Tickets & More Info!       June 14thto 16th: Colorado Rockies v. San Diego Padres                                     “The Colorado Rockies take the field against the San Diego Padres.” Get Tickets!         June 18thto 20th: Juneteenth Music Festival 2021 “One of the nation’s largest Juneteenth celebrations is back and is better than ever. Now celebrating its 10th anniversary as a music festival, Denver’s Juneteenth Music Festival is returning to the Five Points neighborhood with in-person entertainment. There will be a host of events with a special kickoff featuring the Grammy Award-winning R&B group 112. You can also celebrate from the sofa with virtual programming available online. Either way you choose to celebrate, make sure you #DREAMBIG!” More Info!       June 24thto 27th: Denver Fashion Week “Denver Fashion Week is back. Set to take place on June 24-27 at the Forney Museum of Transportation, come celebrate local fashion and a return to society. Get ready to dress your best and snag your tickets today!” Tickets & More Info!       June 24thto 27th: Denver Fringe Festival  “The Denver Fringe Festival is back for its second year June 24-27 as a hybrid festival with both live performances at indoor and outdoor venues in Five Points/RiNo Art District as well as live-streaming and pre-recorded shows. Named “Best New Festival” in Westword’s 2021 Best of Denver listing, the Denver Fringe Festival features a variety of performing arts including original theatre, comedy, circus, magic, immersive and more. This year’s festival has expanded to include a KidsFringe with family-friendly performances and free workshops for kids all day Saturday, June 26 and Sunday, June 27 at the Zabiti Circus Wagon. Ticket prices are just $15 for most shows, and most kids shows are free.” More Info!       June 26thto 27th: Denver PrideFest 2021 “Denver PrideFest features a parade, exhibitors from across the country, culinary vendors, a political rally, family activities, a 5K race, and entertainment. The event is the Center’s largest fundraiser, providing over $1 million in support to help the organization serve more than 57,000 people annually with programs for LGBTQ+ youth, seniors, Colorado’s transgender community, and training and legal programs.” More Info!   Have an amazing June!

Denver Real Estate News – May 2021

Detached Housing Inventory Count Remains at 30-Year Lows   The top story in real estate this year continues to be an extreme lack of homes for sale across the nation. Inventory in Metro Denver continues to decline dramatically for both homes and condos. This year, the Months of Inventory (MOI) started at 30-year lows (around 0.3 months). This trend has continued right into the spring. On the bright side for buyers, coronavirus vaccines should encourage on-the-fence sellers to take the leap of listing their homes to help relieve the inventory shortage. Hopefully, by as early as this summer, these sellers will feel safe enough to invite people in for showings. On a broader scale, the housing shortage is harder to solve than many people may think. Preparing land for new construction and going through the necessary permit processes can be a multi-year affair. Homes cannot be built fast enough to meet current demand. Our current housing market is a result of basic supply and demand. There are not enough homes on the market and construction is slow due to pandemic fears. These factors mixed with a strong supply of buyers are causing average prices to rise. In Q1 2021 average home prices were up 19% for detached homes and up 10% for condos. This is well above the 6% average appreciation from 1971‒2018. However, it is also important to note that these dramatic price increases are partially due to an influx of luxury listing sales over the past year. Strong price appreciation is expected to continue across all price ranges for the first part of the year, but more moderate price growth is likely in the second half.   Information for Buyers Frustrations continue for buyers and their agents, but deals are still closing! The scarcity of listings on the market has been the talk amongst agents this year, who are submitting offers in very competitive situations, often for over the asking price of homes. Despite tough times, there are still ways to make your offers look more attractive to sellers. For example, an Appraisal Gap Guarantee, in which, in the event the property does not appraise at or above the purchase price, the buyers promise to pay a certain amount over the appraisal price of the home. This can be an extra incentive for sellers to accept your offer over other offers that do not contain such a guarantee. Most buyers are also not negotiating as hard with sellers to fix minor inspection issues that may arise since sellers currently have the upper hand in negotiations. Some buyers are even waiving the inspection altogether to get deals done, but that is not recommended or prudent because you may get stuck with serious and costly issues to fix down the road. Whatever the case may be, an honest discussion with your agent can make all the difference to stay competitive in these situations.   Information for Sellers Can I get offers over list price? We may be able to help! For many home sellers in Metro Denver, the scarcity of inventory can be a blessing. If your home is in the entry-level ($0-$300k) to mid-range ($300-500k) price range, your home is likely in high demand. This makes negotiations much easier than they would be normally. Colorado is even in the top bracket of states across the nation, with over 50% of homes selling for over list price! To what extent your home might sell over the list price will depend, in part, on the desirability of your neighborhood. Our brokerage has created “Sold at a Premium” price change maps. These are heatmaps showing which Denver neighborhoods had the most homes selling above the asking price for 1Q 2021. On this map, green means that under 25% of sales were at a premium. Red means 75% or more sold at a premium. As you would probably expect, very expensive areas like Cherry Hills had few homes that sold at a premium. Whereas homes in cheaper neighborhoods sold for huge premiums because of strong demand for entry-level homes.     Keep in mind that you can never underprice a home. However, even in a market such as ours, you can overprice a property. Having a knowledgeable agent is crucial to your success, on either side of the transaction. Don’t hesitate to reach out to see how we can help you achieve your real estate goals!   Here are some more market stats comparing March 2020 and 2021:

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