In the Midst of Peak Selling Season
In Metro Denver, May is historically the month when most homes go under contract, with most closings taking place in June and the beginning of July. Last year, our market saw approximately a 9% gain in appreciation through July, only to watch prices slightly pull back through the fall and winter, settling out with a net gain of approximately 7% across the metro area for 2013.
This year, our market has already exceeded July 2013 pricing, and we are breaking into new territory as we progress through peak selling season. Metro Denver home prices are expected to continue to appreciate through this year, slightly above historical appreciation rates of 3-5%. Our inventories remain historically low, and are actually down more than one-third from where they were last year. This lack of available homes is significantly increasing demand and will continue to push prices to new highs.
The low inventories are putting stress on the overall contract negotiation process. While it is an exciting “seller’s market,” there are critical factors that are present now that are important to note. Demand is higher than historic prices may support in certain areas, so strategic pricing, successful contract negotiation and expert navigation of the appraisal process require the skill and know-how of a seasoned Realtor. To ensure that money is not left on the table, connecting with an experienced and reliable professional is even more critical now than ever.
While rising interest rates are a looming threat to affordability, they are still incredibly low and are expected to remain relatively low over the coming year as the overall economy of our country continues to recover. As a team, The Steller Group was recognized with multiple local and national accolades for our sales achievements in 2013. This year, we will continue to take extraordinary care of our clients and make the most of 2014’s opportunities, despite its ambiguities. If you have questions about anything related to residential real estate—relocating, downsizing, buying for the first time, investing, short selling, etc.—please contact us. We are always available to listen and offer our assistance. We look forward to hearing from you!