While Denver’s real estate market is experiencing a bit of a cooldown, house hunters in the Mile High City know that prices here are still high. Still, if you know what pockets to search in, there
Buying In Denver Be Prepared To Pay More Than List Price
According to a recent study from Zillow, almost 40 percent (39.5) of all Denver homes last year sold above the original asking price. That's up from just 17.9 percent of all homes selling above list price in 2012. The median amount paid over the list price in Denver was 2.9 percent, or about $10,000. While this is exciting news for sellers, for buyers it’s just one more obstacle to overcome in Denver’s challenging market. And this isn’t just a Denver trend: nationally, 24 percent of all homes sold above their list price, according to Zillow.
San Jose, California, lead the nation with 68.5 percent of homes sold above list price. It was followed by San Francisco (64.5 percent), Seattle (52.4 percent), San Antonio (42.2 percent), Sacramento (41.2 percent), Portland (41 percent) and Boston (40.6 percent).
According to Zillow’s Senior Economist, Aaron Terrazas, low interest rates and strong labor markets with high-paying jobs have allowed home buyers in some of the country's priciest housing markets to bid well over asking price. They don't expect this inventory crunch to ease meaningfully in 2018, meaning buyers will be facing many of the same struggles this year.
After the study, Zillow predicted that Denver will be the nation's seventh hottest residential real estate market in the country in 2018, based on "quickly rising home values and rental prices, low unemployment rates, steady income growth and strong job opportunities with lots of people moving to the area."
One of the ways buyers are expanding their housing options is by including distressed properties in their searches. Short sale properties, foreclosures, and real-estate owned housing can often result in lower asking prices and pave a way to break into homeownership in areas with low inventory.
If you think purchasing a distressed property might be a good option for you, give Metrowest a shout. We specialize in these types of sales and would love to work with you!
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