The current central Denver real estate landscape presents a confluence of conditions for buyers that we last saw over a decade ago. Now may be the perfect time to make your move. Here’s why:
Increased Availability of Homes
Currently, the inventory of available homes in Central Denver has surged by an astonishing 51% compared to last year. This means 266 homes are waiting for new owners, a significant increase from the 176 homes listed in February of the previous year. Such a rise in availability is a boom for buyers, offering a wider selection of properties to find their perfect match. We expect the number of available homes to continue to rise as we move toward the Spring market.
Unprecedented Price Stability
For the past four months, the median home price in Central Denver has held steady at $900,000. This level of price stability has been unheard of for over a decade, providing an ideal scenario for buyers not to have to chase the market up. The current list-price to sale-price ratio is 94.3%, meaning buyers are on average purchasing homes for almost 6% less than what sellers are asking.
Extended Time to Decide
The current average of 58 days on the market for homes is the highest it’s been in ten years, closely mirroring the 59-day average of February 2014. This extended timeframe means buyers may not need to rush their decision-making process. The frenetic pace of 2021 and early 2022, where decisions had to be made sight unseen, is less common now. Today, buyers have more time to carefully consider their options before committing.
Attractive Financing Options
Innovative financing options, such as 2-1 buy-downs, allow buyers to benefit from lower rates today with the option to refinance at potentially even lower rates in the future. This flexibility is a significant advantage, making homeownership more accessible and financially prudent.
The combination of increased home availability, price stability, more time to make decisions, attractive financing options, and the potential for future price appreciation creates a compelling case for why now is a great time to look at homes. While the market is currently less frenzied, lower interest rates expected in the future could reignite bidding wars that have been common in recent years.