The statement “Denver residential market is hot” remains true despite it quickly becoming a dry cliché this year.
During the first quarter of this year, in particular, inventory shortages coupled with the ever-growing buyer demand made it much harder to navigate the local housing market in Denver. Last month, for instance, Denver generally recorded 5,722 additional listings.
Based on the Denver Metro Association of Realtors April report findings, the new listings in March marked an overall improvement from February records despite being 14% down from a year ago.
The number of closed sales in March averaged at approximately 5000 homes, leaving an active average listing of 1,921 properties. This end-of-month average for active listings also dropped by about 67% on the yearly turnover.
How realtors are coping up with the dwindling inventory
Change always initiates readjustments, and the currently diminishing property stock is not an exception.
To cope with this diminishing trend, realtors all over Denver are making extreme adjustments to their schedules. Some admit to working late into the night to keep up with the current crazy trends.
Keeping a close eye on local updates for new options in the Multiple Listing Service (MLS) isn’t enough to book an appointment slot in advance. Many are, therefore, putting in additional driving time to search for potential listings before listing for sale.
Paying keen attention to front yard signs that indicate ongoing construction or repair work is one of the key features to help identify potential homes for new listings. Others are constantly looking out for opportunities to book new clients by asking prospects if they up size or sell their homes.
How to make the most from out-of-state buyers
By the end of last year, Move.org demographic analysis report ranked Colorado as the 4th “moved to” state in America behind Florida, Texas, and California. Further analysis suggested that Denver netted one of the highest migration rates during the pandemic.
Ranked as the 8th American city with the most growth between April and October 2020, Denver’s influx averaged at 1.34 new residents for every person that moved out.
Austin ranked at number one and had an average of 1.53 move-ins for every move-out.
Denver still ranks as a top destination for inbound growth, and its high migration rate often results in increased demand from out-of-state buyers.
Considering the already limited inventory around town amid the increasing demand, it is no longer feasible to solely rely on home showings. To effectively meet the demand posed by such clients, most realtors in Denver are taking out-of-state buyers to specific neighborhoods to gauge their interests and preferences for new dwellings in advance.
Think of it as an ingenious idea of giving new buyers a taste of what to expect even when there is no stock left. Relying on previously sold properties or homes under contract gives you the unique opportunity to display what they should anticipate from specific neighborhoods as new listings continue to roll out in a few weeks.
Current market takeaways and insights for homeowners, investors, and realtors
Everyone is trying to make the most out of the hot Denver housing market. Besides generally being a seller’s market, inventory shortages seem to be a recurring limitation that we all have to bear with at the moment.
With everyone throwing every trick in the book to secure their dream home within the confines of the Mile High City, only one proves to be effective against the ever-growing bidding competition.
To get ahead of the numerous crowds of buyers, take a step back from competing for new listings and look for expired ones instead. Withdrawn listings refer to properties that never sold due to over-exaggeration of prices.
If you choose to take this path, you should note that you might still have to overpay, but it’s better than going head to head with the current bidding war.
It’s still early to say that new constructions might address the limited supply of new stock since most local builders are reportedly servicing hundreds of buyers on their waiting lists.
Finding stability from a month-to-month decrease of 5.09% in the number of active listings last month will be challenging due to the increased mortgage rates of 3.18% and the fact that builders are struggling with increased building material costs throughout Denver.Limited inventories will continue being the new normal for this market going into the second quarter, and creativity will stand to be the only trick to get your dream home in Denver. Call us at (720) 724-9794 or email email@example.com for personalized assistance designed to help you make the most from the current housing climate in Denver.