Denver Real Estate Market Pulse – April 2021
As a Real Estate professional, we pride ourselves on market knowledge. One of the benefits we provide our buyers is helping form price opinions using comparable sales data and the unique offerings of each home. We often hear questions like: How do I win a bidding war? or How do I know the right purchase price where I’m not paying too much?
In today’s highly emotional market, sometimes it’s not enough to rely only on past sales data. That’s why effective real estate agents and the property consultants here at Sophisticated Properties are looking deeper than the numbers to develop effective pricing.
Looking Deeper than Data
Another part of our job is to consider our buyer’s entire life situation and how their home search relates to other aspects of their lives. So, other things we take into consideration are what constraints are we working with, like how much time do we have, where will prices and competition be if I wait a month, how much is your time worth, and what is the emotional toll of spending weekends out searching? It is important to understand these non-monetary aspects to help find solutions that piece together the entire puzzle.
Many times, this equates to looking past the data and asking yourself, what am I willing to offer to go under contract and move forward? One way to get the ball rolling is to consider the current pricing atmosphere and competition for each home, as well as the non-monetary aspects of getting under contract. Part of our job is to ask you tough, inward focused questions and use our experience to help you come to a comfortable conclusion.
We feel the frustration with how competitive the current market is, and others have felt the same way. What they have found is, in the long run, sometimes making an uncomfortable jump is well worth the squeeze. For multiple offer situations, check out our article on creative ways to get your offer accepted!
Denver Real Estate Inventory
The months end active listings for March came in at 1921 units, a 5% decrease from February. The good news is, February shrank 12% from the previous month, so this is a little bit of a slowdown in shrinkage. However, March historically brings a 7% increase in inventory, so this number is 12% off of typical marks. This can be attributed to a huge increase in closed homes for March, a 24% increase from February. That tells me that, though we did see a jump in inventory, buyers gobbled them up at record pace. See last month’s Market Pulse where we covered possible increases in new listings!
Rates have continued to rise recently. The current average mortgage rate sits at 3.18%. While this is slightly higher than the sub 3% of the past 6 months, it is still a quarter of a point lower than this time last year and historically a great rate.
One of the questions I am hearing is, “Will the Fed slow down quantitative easing if we keep seeing multi-million job gains and drop of employment?” This would put further upward pressure on interest rates, though many pundits expect mortgage rates to stay in the 3’s for the remainder of the year.
Denver Luxury Real Estate Market ($1 Million Plus)
As prices and appreciation continue to soar, many more homes are crossing the 1M threshold. New listings increase 28% with 402 new detached homes hitting the market in March. However 399 of them went pending, leading to a decrease in inventory.
Denver Signature Real Estate Market ($750k – $999k)
The Signature Market continues to experience low inventory with only 575 new listings. The good news is that was a 27% increase from February. On the other hand, homes spent an average of 5 days on the market and sold for 102% of list price.
Buyers in this segment prefer Single Family over attached townhomes/condos. If you are looking to buy in this market, be sure to schedule your showing in advance because these detached homes last an average of a weekend on the market with scheduling booking up quickly. The median days-on-market is down 11 days from this time last year.
Denver Premier Real Estate Market ($500k – $749k)
Roughly 1800 homes came on the market in March with 1758 of them going under contact. The median days on market in this price range is still a red hot 4 days while the average close-to-list price ratio is 104.5%! This means homes are selling at a 4.5% premium, and this represents an increase from this time last year where the average ratio was 99.9%.
Denver Classic Real Estate Market ($300k – $499k)
Although new listings in the Classic Market increased 24% from February, March had roughly 750 fewer new listings than this time last year, representing a 25% decrease. While prices and appreciation increase, the sheer number of homes that sit in this segment are dwindling.
What were once $450,000 homes are now in the low to mid 500’s. While this segment is still moving blisteringly fast, the premium for homes under in the Classic segment are selling at an average of 3.7% above list price.
Contact the Property Consultants at Sophisticated Properties
At Sophisticated Properties, we’re more than just realtors™. So, if you are buying, selling, or looking to lease your luxury property in the Greater Denver Area, give our property consultants a call.
We can help you determine whether selling or leasing your luxury property makes the most sense. If you decide to sell or lease, we can provide quality buyers and tenants, and this makes life easy for you.
New To Denver?
Moving to a new city can be daunting! We can help make that process a bit easier by offering a Denver city tour.
One of our consultants will give you a personal city tour which will include showing up to 4 places that match the criteria that you set up for us.
This tour will include taking you through Denver's iconic neighborhoods, landmarks, stores, restaurants, and areas with public transportation. This tour is 3 hours long and cost only $350. If you lease one of our available properties, that $350 will be credited back to you when you move in.