Is there a Seasonal Shift happening in Denver now?

 I have buyers waiting for the prices to go down, and truly think they will be waiting for a long time if ever.    The prices are not going down, but they are not rising as fast as they were earlier this year.    In June comparing to last June we saw a 27% increase.   In July there was an 18% increase, and expect this percentage to decrease for August.    

It is seasonally slower after the first to the 15th of July due to families preparing their kids to return to school and taking their last vacations for the summer.   It will pick up again in September, but not as fast and furious as it was in early spring.

The inventory has doubled since March, and we are now starting to see price reductions, which were unheard of earlier this year.     This sure helps those buyers that kept getting beat out this year!

 

So, bottom line, it is a great time to buy a home, and before they start increasing again next year!   Call me when you are ready!

Joan Cox, Broker/Owner

House to Home, Inc.

720-231-6373

www.JoanCox.com

What is an "appraisal gap"?

 

 With the demand for listings much stronger than the supply in the Denver metro area, we are seeing an abundance of showings on most listings, and multiple offers.

When you work for the buyer, you HAVE to do comparables to see if the list price is "fair market value", which is what an appraisal would come in at.    

Right now, we are seeing offers coming in THOUSANDS more than list price, and buyers should address whether they are able to make up the difference between the appraised value and their contract price.   The lender will only lend the appraised value, so if a buyer offers $50k more than list price, the difference needs to be addressed.    IF the buyer is willing to make up this difference, this amount will be needed at closing, ALONG WITH their down payment and closing costs.

It is IMPERATIVE for buyers to review their financial situation to know what they are offering and what will be expected.    Will they be upside down financially when they move in.   Yes they will.   BUT, right now homes are appreciating quickly (in March the metro area averaged 15% increase).   If a buyer is planning on remaining in a property over one year, they should make up this amount.    BUT, if a buyer losing their job or something happens and they HAVE to sell, they most likely will be upside down, and need to bring money to closing.

 

I was hoping we would see more listings this time of year, which is normal (seasonal), and it has increased.   (thru March we were seeing 500 new listings come on each week, but 1500 going pending)   Finally first of April we saw the new listings and pendings being about the same number, but we still need listings, badly!

Need more information - call me.   720-231-6373