The Denver Real Estate Market in May of 2021
Between 1985 and 2020, the average number of active listings in May stood at 15,563. In May of 2006, there was a record-high of 30,457 active listings in Denver. If you’ve been looped into the latest data, you likely know that we’re nowhere near any of those numbers.
In fact, May 2021 set a new record-low of just 2,075 active listings. That’s a 20.01% decrease month-over-month and a 71.06% decrease year-over-year.
And this comes just after the largest March to April increase on record! Total active listings at the end of April were up 35.03% month-over-month with the inventory of detached, single-family homes seeing a 46.17% increase and attached homes experiencing a jump of 19.4%.
Obviously, this market is not for the faint of heart. But it is perfect for smart buyers willing to fight through the fatigue and get in while the interest rates still remain at all-time lows.
Now, for this month’s encouraging news. Prices went up—but not by much.
For detached, single-family homes, the average price hit $700,559 which is an increase of just 0.63% since April.
From March to April, it increased by 3.62%.
From February to March, it increased by 6.72%.
Are we seeing things level off? Is the market beginning to correct? Perhaps, but at this point, it might be too soon to tell. With our inventory low and days on the market dropping (to just 8 for detached homes), but the price jumps slowing, making sense of it all is no easy feat.
Your best bet is to lean on a PorchLight agent. Not only will you receive first-class service, but you’ll work with an agent who is connected to and collaborates with 160+ other agents within our brokerage. Collectively, that’s a ton of knowledge to help you achieve your goals.
So, What Are Some Tips for Buyers Right Now?
First and foremost, work with the right agent. Second, try not to fall in love with the first home that checks all your boxes. There IS a home out there for you. It just may take some time and a whole lot of patience. This is a tough market, not an impossible one.
You can easily get pre-qualified for a loan, but getting pre-approved takes it a step further by giving you a more realistic number for your home buying budget. It will also put you in a better position to pounce on a home right away. Remember, detached single-family homes in Denver lasted just 8 days on the market last month!
Next, be ready to offer over asking. That might mean looking at houses under your budget, so you have some wiggle room to compete. We’re seeing a lot of homes sell for over asking, but you don’t want to put yourself in a bad financial situation. Ask your agent about an escalation clause in which your bid incrementally increases bid to beat out your competitors.
Also, consider looking at homes that have been on the market longer or have come back on the market after falling out of contract. While it’s easy to assume that they’re sitting due to a crumbling foundation or something horrible, they just might have a funky layout or need a little TLC. With a little vision and an open mind, you can certainly still find a bargain out there.
Finally, ask your PorchLight agent about our partnership with Homeward which offers financial programs that enable homebuyers to make cash offers, even before they sell their current home, or if they are buying without selling at all. Cash is king these days, and we can help you rule the market.
Want to Buy or Sell a Home in Denver?
If you’re thinking about buying or selling right now, feel free to reach out to a PorchLight agent. They would love to guide you through the process from start to finish. Whether you’re looking to buy in Parker, Longmont or anywhere in between, we have offices and agents ready to assist.
If you’re considering selling, request a no-obligation Comparative Market Analysis (CMA) report. It looks at comparable homes (comps) that have recently sold, current market conditions, along with your home’s location, age, condition, size and other factors such as upgrades you’ve made. If you want a clear picture of your potential sales price (and profit), a CMA is key.
Until next month’s Denver real estate blog post, best of luck and remember to real estate smartly with the help of PorchLight!
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