If you’re looking to sell residential real estate near Denver, it’s in your interest to research region-wide market trends on a quarterly basis. Tracking as much information as possible on the Denver real estate economy before listing your home is the best way to enter the market informed and ready to negotiate for the most profitable outcome possible.
Below is a recap of the Denver market in the third quarter of 2021, and how it may affect your choice to list a home for sale.
Increase in home sales
During the third quarter, the number of homes sold in Denver was 1187, a 3% increase from July 2021. The increase in homes sold is likely due to increased inventory and the summer rush for buyers to make a purchase before interest rates creep up—and before the colder months make moving more inconvenient.
Decrease in median sale prices
The median sale price of Denver and Cherry Creek homes was down 1% from July, though still 20% higher than in August 2020. While this dip may seem insignificant, it could indicate that the crazy price increases over the past year and a half have finally started to slow. As of August 2021, the median sale price of Denver homes was $550,000, with a median listing price of $539,000—meaning that homes are still often selling for more than the asking price.
Similar time spent on the market
Denver, Cherry Creek, and Washington Park houses are still flying off the market. In August 2021, the median number of days spent on the market was a mere five days—the same as it was in July 2021 (but 2 days less than in August 2020). However, as numbers start coming in for September, it seems that the median number of days spent on the market will be significantly higher for the start of the fourth quarter.
It’s still a seller’s market
The Denver real estate market is moving towards an equilibrium but remains very much a seller's market. This means there are more interested buyers than listings, and competition is high for Cherry Creek homes and properties in Denver’s most popular neighborhoods.
What this means for buyers
If you have aspirations to purchase a home in Washington Park or another hot Denver neighborhood in the third quarter of 2021, you may not have a lot of properties to choose from. Though inventory is starting to open up, it will likely take months before a more balanced market emerges. As a buyer, you will have less negotiating power in this type of market and may be forced to offer more than asking to land your home of choice. Use these tips to increase your odds of success in a seller’s market:
- Get pre-approved for a loan.
▪️ Visit a mortgage lender and go through the pre-approval process prior to attending any showings. This way, you can take a letter of pre-approval with you, which will show sellers you are a good faith buyer. Preapproval greatly facilitates the offer and closing process. - Be ready to act quickly.
▪️ With Denver real estate selling in a matter of days, you need to be prepared to make an offer on the spot when you find a home you’re interested in. Have all your paperwork in order and take any other decision makers with you when you view homes, so you can make a quick offer. - Drop contingencies.
▪️ In a buyer’s market, you can include common contingencies based on appraisal results or obtaining financing to strengthen your position. In a competitive market, these contingencies will often mean losing out to a more motivated buyer. Talk with your Cherry Creek real estate agent about which contingencies you should drop and how to mitigate the risk this opens you up to.
What this means for sellers
Homeowners hoping to sell their Denver real estate have the upper hand in the current market. Their homes are likely to get multiple offers and many buyers will be willing to overlook certain faults, such as repairs that need to be made or upgrades that have not been completed. However, sellers should still use the following tips to ensure their house will sell for top dollar:
- Stage it.
▪️ Denver homes that are professionally staged can sell for up to 23% above the list price and sell much more quickly than those that are not staged. If you don’t want to have your home staged by a pro, you can still increase your chances of high offers by staging your home yourself or having it virtually staged to appeal to online buyers. - Price it competitively.
▪️ Don’t make the mistake of overpricing your home because of the seller’s market. Homes that are priced fairly receive more offers than those with unrealistically inflated price tags. Work with a professional Cherry Creek real estate agent who can perform a comparative market analysis to come up with a competitive price for your house. - Boost curb appeal.
▪️ Make a good first impression by ensuring your lawn is tidy, your shrubbery is trimmed, and there is no obvious damage to your walk or driveways. Place some colorful potted plants on the porch and put a welcome mat in front of the door to make sure your buyers fall in love—and wipe their feet—before setting foot in your Denver home. - Perform digital marketing.
▪️ To make a splash on the market, you’ll want to make certain that your property is seen widely by all the right people. Posting high-quality photos and videos across social media platforms is the key to reaching not only local clients but potential out-of-state buyers who might be looking to relocate.
If you plan to buy or sell a Washington Park or Cherry Creek home in the coming months, reach out to Denver real estate agent Eddie Johnson for local expertise and trustworthy customer service.
