Denver area news outlets are always jumping to get the first crack at reporting last year’s Real Estate statistics, and 2019 saw the same rush to the presses.
The funny thing about reporting “All of 2018 in Real Estate” in January, is that December Real Estate figures — in nearly every market — tend to fall behind what went on the rest of the year. Predictably, this is just what took place across Metro Denver.
The Denver Post seized on the moment to report 2018 as the “year of fire and ice,” a line repeating in many other publications because of the inherent drama of the words. FIRE! ICE! Oh now — whatever shall we do!
Time for a reality check on the world of Real Estate across greater Denver. The total number of properties (both single family homes and condos) sold in Metro Denver 5.5% in 2018 compared to 2017; that number matters, but it isn’t cause for alarm. In contrast to that figure, higher home prices led to a record annual sales figure of $26.5 billion — 2.36% higher than total annual sales for 2017.
As always, I like to help my clients understand what this means for their own situation.
SELLERS // If your home is on the market, or you are considering a home sale in the near future, chances are your home may take a little longer to sell. How much longer, exactly? Every situation is unique, but Days on Market for Single Family Homes was 41 in December 2018 (compared to 37 in December 2017), while Days on Market for Condos was 37 in 2018 (compared to 32 in December 2017). This extended timeline will require a bit more patience on the part of Sellers, possibly a few more showings to prepare for — but hardly reason to panic.
And what about the selling price of your home? Again, the sale of your property is dependent upon location and a variety of other variables, but overall average home prices rose year-over-year; single-family homes in metro Denver sold for an average of $522,839 — up 8.05 percent from 2017. Condos across the Metro sold for an average price of $351,677, up 9.82% from the year before.
If you do plan to sell your Condo or Townhome, be prepared for plenty of interest! Higher prices on Single Family Homes have influenced more buyers to consider alternative options, and Millennials are taking the leap into homeownership at a younger age than the generation before, signing on the dotted line for hip bachelor or bachelorette pads across Metro Denver.
BUYERS // The good news for you is, the market has relaxed enough to let more of you get a foot in the door! Should you sleep in instead of searching for your next ideal home? Nope! The early bird still gets the worm. But with a few more average days on market, time is now a bit more on your side than it was a year ago.
And what about prices? Statistics prove the numbers remain strong, so while you have a better shot at clinching the deal on the home of your dreams, you won’t be getting it for a song. Plan to come in strong, but based on the advice of your Realtor, you may be able to seek minor concessions on your purchase, such as including appliances, offering a small flooring or paint allowance if the home is in need of these items, or asking draperies or a wall mounted television to stay with the property.
If you are shopping in a uniquely competitive neighborhood, a popular school district, or a price point with very little inventory available, you may need to keep your eye on the ball and forgo asking for any extras. This is where the help of a Real Estate professional makes all the difference.
Are you considering a home purchase or sale, or know someone who is? I’ve been serving the Denver Real Estate industry for many years, and would love the opportunity to help you sell for top dollar, or purchase the home of your dreams.