The months of April, May, June, and July typically account for more than 40% of the year’s housing transactions. In Denver, inventory is at record lows, home prices are rising, and foreclosure rates are low; all of which makes our market very strong.
First the downside…
1. Inventory is still at record lows, at about half what we would expect. This is caused by both the lack of new construction as well as homeowners deciding to delay selling their existing home.
2. The number of buyers is increasing. With rental prices soaring, renters are deciding now is the time to buy and lock in a payment and real estate investors are looking for more properties to turn into rentals.
3. Cash is King. If a homeowner has multiple offers and one of them is a cash offer, the cash offer is the one most often chosen. Cash buyers can close quickly and with fewer roadblocks.
Now the upside…
4. New home lending standards are allowing lenders to slowly make it a little easier to get approved for a mortgage.
5. We are seeing a definite correction in home appraisal values. A few years ago appraisers were consistently under-valuing properties, reacting to the ultra-conservative nature of the lenders. Today we are seeing the majority of appraisal coming in at value, killing far fewer deals than in the past.
The Denver Metro area is continuing to grow, which should keep our market and home values strong in the foreseeable future.