State of the Market

When there are more buyers than sellers in the market, a high demand for homes is created and the state of the current market is referred to as low-inventory.

What does this mean for sellers? Luckily for Sellers, they will have more prospective Buyers willing to pay top dollar and usually a quicker sale.

Unfortunately for Buyers, the search will be tougher and bidding more competitive. What can Buyers do to prevent getting discouraged? Learn about the intended market. Buyers should talk to their realtor: learn enough about recent sales to be able to recognize when prices for new listings are underpriced, at market value, or over-priced, be able to predict which listings will be more competitive. When buyers do make a competing offer and end up empty-handed, it is important not to hastily grab the next listing because Buyers may get Buyer Remorse. Keep in mind a home is usually a Buyer’s largest financial investment, and a place to make memories for generally many years.

On January 20th this year, REColorado released its annual report on the Denver Housing Market for 2014. Specifically reporting about the state of the market they published the following.


Based on information from REcolorado®, Inc. for the period January 20, 2015.

“Following an active summer selling season, inventory levels dropped throughout the fourth quarter of 2014. Weeks of inventory began the year at an 11 week supply, hovered around eight weeks throughout the summer selling season, and ended the year at a record low six-week supply. Homes spent an average of 35 days on the market, 13 days less than the 2013 average, with homes in the $150,000 to $300,000 price range selling the quickest.

The year ended with 5,352 active listings on the market, less than half the number seen at 2011 year end, and lower than we’ve seen in over a decade.

In 2014, a total of 65,714 new listings came on the market, slightly lower than what we’ve seen in the Denver area in previous years.”

                 

Based on information from REcolorado®, Inc. for the period January 20, 2015.

Today we are seeing low inventory with multiple offers and many families feeling discouraged. Whether buying or selling, having an experienced real estate agent versed in the various techniques to market a property and negotiate a successful sale is the most important step in the home sale or purchase process, where multiple offers is the norm, not the exception—this is especially important in today’s environment.

This representation is based in whole or in part on content supplied by REcolorado®, Inc. REcolorado®, Inc. does not guarantee nor is it in any way responsible for its accuracy. Content maintained by REcolorado®, Inc. may not reflect all real estate activity in the market.

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