The Denver real estate market continues to be a positive environment for home sellers. In December, prices for detached, single-family homes were up 0.3% from the month prior and 16.2% year-over-year. While there were 1,699 active listings in November, that dropped by 39.1% in December to just 1,034 homes for sale, likely a reflection of people wanting to stay in their homes for the holidays. Nearly a third of these active listings were under contract in just 7 days or less and 70.6% sold for at/over asking.
Looking ahead to 2021, experts predict that inventory will likely remain low and new home builders will continue to struggle to keep up with surging demand. This is likely to keep house price appreciation flying high.
In addition, the market demand will keep trending towards buyers purchasing larger homes in more suburban areas (specifically to the west of I-25) with more rooms to allow for families to work and educate from home. If you fall into this category as a buyer, make sure you have a great Denver real estate agent by your side.
With interest rates at continued and expectedly sustained levels below 3% or near there, buyer demand and refinance activity will likely continue. House hunters have incredible buying power right now, enabling them to get into higher-priced homes without overextending their budgets. However, with more homeowners refinancing when interest rates begin to climb, it may create future inventory shortages. Rather than homeowners choosing to move when interest rates increase many may choose to renovate and remain in their current home.
That's a lot of information to unpack, so feel free to get in touch with your PorchLight agent to talk more about how you can successfully buy or sell right now!
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