RECAP OF THE DENVER METRO REAL ESTATE MARKET
Sterling Real Estate Group is is an independently owned real estate company, located in Lakewood, Colorado. Our real estate agents bring years of experience in real estate, business and customer service. We specialize in serving many of the Metro Area Denver and Aurora neighborhoods, as well as the cities of Lakewood, Littleton, Golden, Highlands Ranch, Centennial, Parker and Castle Rock. Our agents focus on the sale and purchase of residential properties as well as multi-family, rentals and fix&flip investments. We also have many agents who are very familiar with purchasing investment properties through your Self-Directed IRA, as well as if applicable, the ability to use Reverse Mortgages to purchase a home. Our goal is simple: To provide superior service to our clients while promoting a positive atmosphere for our Realtors.
Denver Colorado Home Trends
Seller Trends: The market is definitely changing for Denver area sellers. In the *Seven County Greater Denver Metro Area, the number of active Detached Single Family homes for the month of January was 3,372. That was an increase of 34% over the number of available homes in January of 2018. The number of condos and townhomes that were actively listed was 1,660. That too, was an increase of 66% year over year. Combined, the total number of Actively listed homes increased substantially with a total inventory of 5,032, which is 43% higher than this same time last year. However, this increase in active listings, although giving buyers a little more bargaining power, still shows a monthly inventory supply (MSI) of only 1.45 months, which still indicates a seller's market. A typical market would require that there be 24,774 Active units, or a six month supply. On average, the number of days on market for January was 41, which was nine more than the same time last year, but still relatively low.
For the past several years, home prices in the Denver Metro Area, have increased an average of 10%, year over year. In 2018, the average sales price for a Detached Single Family home was $493,755, which was a yearly increase of only 3.5%. For Detached Single Family homes, it increased only 1.2% with the average sales price being $342,543. For single family homes the top average sales price peaked in April of 2018 at $536,794. For attached homes, the top price was $358,302 and that came in July of 2018. So despite the limited inventory, prices still leveled off considerably in 2018. The two main reasons for this were the increase in mortgage interest rates (nearly 1%) and we reached the tipping point in price for the Denver market. Most consumers couldn't justify spending so much of their annual income on homes that still either needed considerable updating, or weren't exactly what they were looking for. No longer was it cheaper to buy than it was to rent. Although the Colorado economy was humming along, incomes had not kept up with the pace of home appreciation. But despite prices leveling off, the number of homes sold in 2018 still decreased 5.33%, to 51,818 units. Prices in January of 2019 increased only 1.11% year over year for detached homes. For attached homes, prices remained strong, with a year over year increase of 4.15%. The average sold price for a condo or townhome now sits at $490,674.
*Greater Metro Denver Area includes the following counties: Denver, Douglas, Elbert, Jefferson, Adams, Arapahoe and Broomfield.
Good news for Buyers: For Buyers, there is finally some good news, with inventory up and prices leveling off. The need to bid way over asking, remove your right for an inspection, or the need to waive your appraisal requirements, are gone. Also, with homes sitting on the market a little longer, there are fewer instances of multiple offer situations, although depending on price point and condition, there are still instances where you have to deal with that. The good news is that interest rates have leveled off and in some instances decreased and average now around 4.41%. So as a buyer, your bargaining power has definitely increased. Also, according to Federal Reserve Chairman Powell, interest rates will hopefully only adjust based on inflation (or lack thereof) and other economic indicators in 2019. So hopefully, that will keep interest rates steady throughout the year. However, that doesn't change the fact that the housing market is still cyclical based on the weather and school breaks. As a buyer, the best time to purchase a home is now through early March and then again after mid-July, when kids start getting ready to go back to school. April through the end of June is always the most competitive and has the highest prices. So, if you can purchase a home when it's most advantageous as a buyer, you should plan accordingly and contact one of our Sterling agents to help you through the process!
At Sterling, our real estate agents are encouraged to explore various options in the marketing, financing, and selling of your home. We understand there is more than just one way to sell real estate. Therefore, we strive to provide a variety of tools, techniques and concepts to assist our realtors in creating and implementing the best marketing plan available to help you accomplish your real estate goals, while keeping your needs and your home specifically in mind. Can your current mortgage rate be assumed? Will it make a difference to close at the beginning or end of the month? Should I paint and get new carpet, or just offer an allowance? Are there tax consequences if I sell before two years is up? All good questions that could make a difference for a seller and why you need a professional and qualified Realtor. At Sterling, all of our real estate agents are required to pursue continuing education on a yearly basis to keep abreast of the most effective and cutting edge marketing and sales techniques in order to knowledgeably answer all your questions and to get your home sold in the shortest amount of time and for top dollar.
Our goal is to provide our home buyers with friendly, knowledgeable and personal service. Our Realtors are highly trained and experienced in assisting buyers in a wide variety of purchases, from HUD homes, foreclosures, short sales, new construction, as well as your standard listing. Many of our agents also specialize in the purchase of property through Self-Directed IRA's and when applicable, through the use of Reverse Mortgages. Whether your are looking to do fix&flips or fix&holds through your IRA, or use a Reverse Mortgage to purchase a home without making monthly mortgage payments, we can help guide you through the process. Our real estate agents have a comprehensive understanding of the various neighborhoods and market conditions within those areas and enthusiastically relay that knowledge and expertise to their buyers, making the buying experience a pleasant and informative one.
Spectra Mortgage was founded with the philosophy that a mortgage company should provide sound financial advice in the area of mortgage financing and that the people providing this service should be professionals. They believe that the key attributes that distinguish Spectra Mortgage from the others are Financial Expertise, Integrity, and Service.
Spectra Mortgage Corporation originates mortgage loans and provides mortgage services in connection with the acquisition or refinancing of owner occupied and investor owned single family, multi-family, and commercial property. They are also trained and can give sound advice with regard to Reverse Mortgages. Despite all the negative and false information regarding Reverse Mortgages, they can actually be used as a great financial planning tool. If you need help with a mortgage, or just have questions about your credit, contact Spectra Mortgage. They are located in Lakewood, Colorado and provide mortgage financing and mortgage services throughout Colorado. For additional information check out their website at: www.spectramortgage.com.
Relocating to Denver
Sterling Real Estate Group and all of our real estate agents want to welcome you to our fabulous city of Denver, Colorado, one of the country's most enviable places to live and work. Whether you are looking for panoramic views of the majestic Rocky Mountains, the nation's largest public park system, or 300 days of sunshine a year, Denver and her surrounding communities is the place for you. If you are relocating to the Denver area and in the market for a new home, we hope you'll find this site both informative and helpful. Feel free to use our Denver Metro IDX site to find your perfect home and when you are ready, please feel free to call or email if you have any questions or would like to see any of the fabulous homes available!