If you’re thinking of buying a home you’ve probably noticed the inventory of available houses for sale has been declining and mortgage rates and housing prices are on the rise.
After years of having a huge inventory of houses to choose from, thousands of foreclosures and very low mortgage rates, the market is heading the other way.
Denver is number three regionally for having the fastest time to sell a house. The average amount of days in Denver to sell a home is now 18 days, down from 26 days just a few months ago. Seattle, Washington is coming in at 12 days and Oakland, California is selling homes within 15 days.
Denver had a record low number of homes for sale last month. Only 3,878 residential properties were for sale at the end of February. The last time the inventory was that low was in 1985. Normally, February inventory of homes for sale averaged almost 15,000. Six years ago, nearly one in every three of the homes listed were distressed or foreclosed homes. Today the number of distressed or foreclosed homes is only 1% of the listings.
Condominiums, on the other hand had a 19.35% increase of inventory. This increase is bringing huge concerns that Denver will be glutted in new luxury apartments very soon. That glut may force a drop in apartment rents.
Nationally, the typical length of time for a house to sell was 60 days. Last year it was 68 days. Last month, during February, almost 15% of homes listed nationally were sold within two weeks.
The low inventory of homes, combined with the speed they are selling are driving home prices higher. The annual, median sales price of homes jumped 7% last month. The median price of homes for first-time buyers last year was $170,000.
The Catch-22 of the low inventory is that potential sellers are reluctant to list their homes. They want to wait until the inventory is larger to have more replacement homes to choose from.
Renters are thinking twice now about whether this is a good time to buy a home. Job prospects are improving and wages are growing but renters are becoming hesitant at buying until there is a larger inventory.
In Colorado, homes under $250,000 are almost non-existent. The number of homes for sale in the under $250,000 range dropped 72% and under $150,000 they dropped 87%.
In fact, there are 12 towns (Boulder, Longmont, Lafayette, Louisville, Superior, Erie, Loveland, Berthoud, Firestone, Frederick, Mead and Dacano) where there are no homes that have an average price under $250,000. In Boulder, the average price of a single-family home is over one million dollars. The professionals may have to rethink what the ‘norm’ is and come up with new numbers.
Gantenbein Law Firm's Denver real estate attorneys are some of the few Colorado attorneys that are both licensed attorneys and licensed real estate agents. This holistic, well-rounded approach to real estate law affords their clients both the experience and knowledge of all aspects of Colorado real estate law and issues, including finding and purchasing homes that are within budget and affordable to the homeowner. Gantenbein Law Firm's real estate attorneys can also review any real estate contracts, or post-sale real estate issues, including non-disclosure or disputes with an HOA.
Gantenbein Law Firm also practices HOA law- including disputes with your Colorado HOA, Foreclosure Defense - including loan modifications, Rule 120 Hearings, and post-foreclosure issues, Business Law, Probate Law, Wills, Trusts and Estate Planning, and Tax Law. For more information, visit www.gantenbeinlaw.com or call 303-618-2122 for a consultation of your case. Gantenbein Law Firm is located in Denver and serves clients throughout Colorado.