An Update on Our White-Hot Market
The 2021 metro area market is white-hot!
There’s currently so little home inventory available that almost every single property for sale is getting multiple offers and purchase prices are being pushed above list prices. Seasonally speaking, it’s fairly normal for inventory to be low and for well-priced and well-marketed properties to get multiple offers that push the purchase price up by 3% or 4%. However, we’re seeing that purchase prices are being pushed up by 10% or 15% above the list price.
To help our buyers compete in this hectic market, we’re having to cover appraisal gaps, waive inspections, use escalation clauses, and go hard with the earnest money. That’s to be expected when we have almost 60% less inventory available year over year. With rates being historically low, that has sparked an incredible amount of demand, especially as vaccines roll out. The intense demand has had a huge effect on pricing. We’re seeing homes appreciate by almost 20% from last year, which is very rare.
It’s incredibly tough to be a buyer right now.
The National Association of Realtors has also shown year-over-year gains for 100 straight months now. That really shines a light on the robustness of our market.
Interestingly enough, there is one buyer’s market in Colorado: the downtown condos market. Unfortunately, people aren’t interested in paying for an HOA and not being able to use amenities. With sports coming back and restaurants beginning to reopen at full capacity, we hope to see a big increase in inventory so that the market will balance out a little bit. It’s incredibly tough to be a buyer right now.
If you have any questions about buying or selling homes in our market or real estate in general, don’t hesitate to reach out to us. Let us know how we can help you.