One thing is for certain, looking at the rich color contrast with the leaves changing that Fall brings can be breathtaking! We also have the Broncos off to a good start, so let’s hope we have some great football to watch in the coming months along with a nice Indian Summer. Our last update was back in August, so let’s jump into this update and see what has been happening in the Denver market since our last communication:
1. Denver Metro Area Home Report: September
In our last update, active listings in the Denver market were sitting at 7,059 homes through July. As of the end of September, those active listings bumped up to 7,586 homes which is almost identical to last year, but we are starting to see a more gradual increase in inventory levels even though we are still way below historical norms. For example, the historical average number of active listings for the month of September is 17,019 homes (1985-2016), so ultimately we should be working our way back to a more historical environment but until we address that areas of the market where the heavy demand exists, this may continue for a little while longer. As we head into November and December, expect to see active listings drop off over the holiday months as they have for the last 4-5 years now following their usual seasonal trend. Here are also some other interesting tidbits of information worth looking at:
a. “Back on Market” and “Price Reductions” are becoming more common than “New Listings” in the MLS searches.
Why? Escalating demands during inspections may be causing some of “Back on Market” as buyers want move-in ready properties vs. ones that need a lot of work with updating and other related items. Also, many real estate brokers have become lazy and complacent when listing a property because of the hot market we have had over the last few years. That coupled with slowing showing activity is one of the main drivers behind “Price Reductions” to get more activity with the listings that aren’t selling.
b. Having your home ready, staged, and well marketed will be critical as we move forward into 2018 if you want to get your home sold in a timely manner.
Working with someone like us can help you to get your home ready as we can provide insight into what people will be looking for as well as some items inspectors might point out during an inspection. Heading off these issues before listing your property will go a long way in getting it sold in a timely manner for a price that you are hoping to get.
c. The hot price range still resides with properties valued at $400k and lower.
As you start to get above $500k, the selling landscape changes quite a bit. Price, location, and condition will always be the ultimate driver for how much a house will sell for.
d. Mortgage rates continue to tick higher, which is also helping to cool things off a bit and long overdue in my opinion.
However, for comparison purposes 30 year mortgage rate was at 6.125% 10 years ago, so we are still well below historical norms with interest rates as well. If you are looking to make a change, taking advantage of these historically low interest rates is advisable.
e. New home builders are also starting to get more aggressive in the home selling process as activity may be starting to shows signs of cooling off.
For example, Lennar Homes currently has 31 communities under construction in the State, and the lending arm of Lennar (Eagle Home Mortgage) is now offering to pay off up to $13,000 in student loans to help buyers qualify to purchase one of their homes. I think this points directly to the lack of building to address the real demand for many buyers in the $400k and lower price range. 3 years ago, a new home builder wouldn’t even have looked at you if you didn’t have top notch credit and wouldn’t even consider a contingency deal (having a home to sell) to buy a new build.
Activity from October into November should remain relatively moderate as we march towards the holidays. After that activity should quiet down until we get into our main selling season next Spring. What if you have a home to sell? I’ll elaborate on that some more below.
2. New Website – New Look: Make sure you visit our newly updated website at:
www.fullerhomeoptions.com. I have been working on that since July and finally got it ready and launched as a lot of thought needed to be put into this site for future growth. You will see some new features throughout the site, and we will be developing City pages that you or anyone you know might find of interest. If you have anyone looking for a home or that has any real estate needs, have them check us out on the web or by calling 303-332-8093.
3. When is a good time to sell?
I’ve had this question asked of me lately, so I thought I would throw in my two cents worth on the subject. As we are heading into the slower part of the year, I typically advise people to hold off until the first of the year unless you have to sell now. If you do have to sell now, you will likely need to price accordingly for the holiday months.
With that said, when is the best time to get your home on the market next year if you don’t have to sell now? I always advise people to list when your competition is minimal which would be in mid to late February. As we head into March and April, new listings will become more and more active and thus the competition will increase. As I indicated above, as long as you have your home well prepped and price accordingly you should always beat out the competition regardless of the time of year we are in.
4. Property Searches:
If you have any interest in looking to see what is available in the Denver market, don’t forget to use the MLS property search feature we have set up on the website, click here to begin your search.
Feel free to go in and play around with it and as always reach out if you should have any questions!
That should do it for this update. As always, if you or anyone you know should have any real estate needs, please consider using us as a resource as your business and referrals are GREATLY appreciated!