One of my favorite pastimes is riding roller coasters: the taller, faster, and wilder, the better! Everyone knows the feeling of getting locked into your seat and starting the ascent. It is often slow, noisy, and feels like it may never end. The Denver real estate market kind of feels that way right now.
Prices in the Denver area have been climbing steadily for over a year now and I don’t think we are at the top quite yet. At month’s end, the average price for a detached single-family home stood at $632,581. That’s a whopping 23% higher than February 2020! So how high will it go and when might this climb stop? Well, that all depends on inventory and interest rates—both of which are at historic lows and fueling this incredible seller’s market.
Historically, we know that more inventory will hit the market as spring arrives, and that inventory should double by the time we reach the Fourth of July. If that is the case, we will be sitting on around 4,000 active listings, which is still well under the typical 16,000+ homes we would need to bring back an even playing field between buyers and sellers. Prices seem to be reaching their peak, but we should continue to see outrageous bidding wars in the most competitive price point between $400,000 and $600,000.
The good news? The value of owning a home couldn’t be stronger. Colorado continues to outpace most of the United States in quality of life, work, and play. COVID-19 has only increased out-of-state migration as cities like New York, San Francisco, and Los Angeles are still shut down. Since I began my real estate career in 2013, many people have chosen to wait out the seller’s market hoping that prices would pull back, but year after year they find that it would have been better to jump on the roller coaster before it climbed any higher.
Yes, the Denver real estate market is a wild ride right now, but The Steller Group has expert agents who know how to guide you through the ups and downs of buying or selling a house. Our team will set realistic expectations to help you manage the twists and turns that come with the buying or selling process. Together, we will ensure that your home buying or selling experience will feel less like a roller coaster and more like smooth sailing. If you want to know when the best time to sell might be or how to start the home buying process, please call or email us today at [email protected] or 720.593.9355. We’re here to help.