With the end of the year soon approaching, Colorado’s real estate market doesn’t want to cool down. Homes for sale may be seeing a bit less activity overall, we’re still seeing bidding wars, and properties selling for much higher than their asking price - especially in certain areas and price ranges.
Whether you’re looking to buy or sell, it’s still an amazing time to make a move. The acceleration of home prices appears to be letting up slightly, and mortgage rates have remained low as well, though this trend may not last long.
Let’s explore why the September real estate market holds opportunities for buyers and sellers, after we take a look at your market snapshot for the month of August.
We’ve all seen it: homes are experiencing record appreciation, and selling for way more than list price. It’s been an unprecedented year, with median listing price growth in the double digits 50 weeks in a row! However, this trend seems to be losing a little steam. According to Realtor.com, the median listing price jumped 8.6% year-over-year in the last week of July, which was the fourth consecutive week of single-digit growth. Their chief economist, Danielle Hale, says that “This rate of growth is still higher than we’ve seen historically…we expect prices to ease as we head into fall…which will mean still-strong pricing for sellers and a window of opportunity for buyers.”
One of the most promising trends we’re seeing in the real estate market is the rising level of inventory. Coupled with a slight drop in demand, this bump in inventory is actually another reason why home prices are starting to level out. Realtor.com shows new listings up 2% year-over-year for the week ending 8/21, and 6% the week before. In fact, 19 out of the last 22 weeks have seen an increase in new listings. These figures are reassuring, but the truth is that total listings are still below last year’s numbers, and WAY below historical norms. Also, these numbers vary from city to city. For instance, Denver Metro saw an 11.69% drop in active inventory from August to September (Detached plus Attached). Still, these current trends are good news for any buyers out there, especially those who’ve waited through a hyper competitive spring and summer.
On either side of the coin, one factor that benefits everyone is mortgage rates remaining low (for now). They’re still hovering under 3% on 30-year loans, and rates on 15-year loans averaged just 2.17% in the third week of August. However, it’s important to realize that this trend may change sooner than later. Even the smallest increase in interest rates can cost a potential buyer thousands of dollars in the long run, so if you’ve been waiting on the sidelines for the right opportunity to move, now is truly the time.
While bidding wars have simmered down a bit, there’s still a good chance you’ll have to compete for the home of your dreams. One thing that can make your offer stand out from the rest is coming to the table with all cash. Our 8z Offers - Cash Buyer program has been a game-changer for our clients because cash buyers often pay less for their house and more importantly, get their offers accepted at a higher rate than mortgage-contingent offers. In fact, 84% of cash offers get accepted on the very first offer.
On the flip side, if you’re looking to sell, 8z has a number of modern solutions to ensure that the sale of your home goes smoothly.
One of our most popular options for sellers is our 8z Bridge program, which for many is the ideal solution in this market. With Bridge, you are armed with an all-cash offer to go out and buy your new home. Once you’re all moved in, you can list your current home on the open market, where 8z agents typically reach 3x the audience and net 1.5% more than industry averages.
Whatever your situation, early fall can be a great time to make a move - not to mention more comfortable temperatures to make that move in! Feel free to give me a call if you’d like to discuss your options. I’m here to help!
