Spring has sprung in the Denver Metro real estate market! We are seeing a slight shift in the market due to a combination of growing inventory and moderate mortgage rates. While Denver remains a seller’s market, Realtors® are noticing a shift in buyer behavior as certain homes stay on the market for extended periods and there are more frequent price reductions. The homes in prime locations in the Denver Metro are still selling hot and going above asking price. Lori Abbey from RE/MAX says, “Homes under $500,000 will likely sell in the first week on the market because of the demand for affordable homes and renters looking to build equity versus continuing to pay high rents. Homes under $350k should go under contract the first weekend with multiple offers if priced correctly.” As Abbey mentioned, rent continues to rise in the Denver Metro area with an 850 square foot apartment rental averaging $1,602, a 6% increase from last May. In regards to inventory, in April we saw a 26.3% rise in single-family homes and a 64.4% increase in condos year-over-year.
Overall, the process of buying a home is becoming slightly easier in comparison to last spring when buyers were offering 5%-10% above asking price. Competition is decreasing in the suburbs where you will see homes listed longer. Something to keep an eye on this year, is the luxury market in the Denver Metro ($1 million home listings and above) as neither buyers or sellers have the upper hand during the homebuying process which could be a sign of a shifting market.