2021 has been one of the busiest years on record as standing home inventory remains low and homebuyers are still out in full force.
June continued to see homes move quickly from New Listing to Pending status, keeping inventory levels seemingly low. Last June, the Denver housing market had five weeks of home inventory, this summer we have consistently averaged two weeks of inventory at any given time.
In June, sellers added 18% more New Listings to the market than last month which is 4% more than last year at this time. Many homeowners are taking advantage of impressive amounts of accrued equity and record-low mortgage rates and listing their homes. However, even with this increase, it is not enough to level the supply and demand imbalance in our market because essentially homes are leaving the market within just days of the new listings appearing.
What does this mean if you are a buyer?
The market is still competitive and housing prices continue to increase month over month. The Average Closed Price for a home was $642,167, which is another all-time high and 4% increase from last month. In May, it was reported home prices increased 15.4% year over year nationwide and will continue to see year-over-year growth in 2022.
Be prepared by creating saved searches and setting up property notifications in the multiple listing service (MLS.) With REcolorado.com listing alerts you can be one of the first to be notified when a listing that meets your criteria enters the MLS. Also, don’t forget to communicate with your real estate agent. Agents have their ears to the ground and eyes on the prize. The more you communicate your needs to your agent, the better they can help you find your next home soon as it hits the market!
What does this mean if you are a seller?
If you are ready to list your home, now is a great time to do so. Market conditions continue to be favorable for sellers. However, many homeowners are hesitant not to sell their home, but to sell their home and need to buy another. As outlined above, the market is saturated with buyers ready to submit solid offers on limited inventory.
If you list, be ready to move fast! In June, single-family homes spent an average of 10 days actively available in the MLS, one day fewer than last month. Condos and townhomes were on the market for 13 days. Again, if you’re ready, it’s a great time to list your house.
Curious on how much your home is worth? Online calculators can be useful tools to help you determine a range your home is worth. Reach out to your local real estate agent to perform a comparative market analysis (CMA) so you can possess an accurate view of your home’s value.
Colorado isn’t the only state to be experiencing low inventory; however, according to a report issued in May by CoreLogic, Denver is one of the top metros to experience price increases. Denver saw a 16.4% price increase year over year. Other leading metros were Phoenix with a 23.9% increase and San Diego with an 18.8% increase.