Now that 2017 is almost half over and the first official day of summer is a day away, it seems like an appropriate time to revisit some trends in the Denver Metro Real Estate Market. The behavior of the market has remained fairly consistent over the past couple of years and these insights are a great answer to the quintessential question, “So, how’s the real estate market in Denver these days?”

Trend 1

First- time home buyer activity is low.
First- time home buyers are facing interesting challenges right now. One, it’s hard to find a home that meets their needs due to supply and demand. Two, home prices are on the rise. Lending is more stringent than it was prior to the crash of 2008 and many don’t have a hefty down payment. There are 60 down payment assistance programs in Colorado- it’s time to check with a smart lender if this is a concern. Student debt is also a serious barrier to loan qualification which keeps many young professionals living in their parents’ basements.

Trend 2

The Internet is not replacing realtors.

Even though 90% of buyers look online during their housing search they still utilize their trusted agent to set them up on the search, negotiate (when possible) and write a sold contract that will get them to a successful closing. The preference to work with a traditional realtor on the purchase of a home is actually at an all- time high, despite Zillow, Trulia and the rise of discount brokerages.

Trend 3

Buyers aren’t necessarily buying bigger homes.

The typical home that buyers will buy may shrink soon. This is due to baby boomers who will “downsize” and younger buyers are opting for less space in order to live in the city where they can walk and light rail everywhere. Think Tiny House Nation.

Trend 4

Down payments are sort of all over the place.

I think most home buyers think you must have 20% down to purchase a home. While a larger down payment is more attractive to sellers since they have more confidence that their home sale will close, home transactions are still made with less of a down payment. In 1989, the average down payment was 10%. In 2005-06 before the “crash” it was super low- 2%. From 2012-15 it was 12%. There is no silver bullet- understanding how down payments affect your purchasing leverage and your monthly payments is key.

Trend 5

The home search is taking longer- due to inventory.

So, if you need to move out in May, you probably should have started looking in February, or sooner. From 1987-2007, home searches were taking somewhere around 8 weeks. We are now in the ballpark of 12 weeks. Then add 30-45 days to close once you’ve found a house. This process can take a while so start early!

If you are ready to get into the Denver Real Estate market, contact me today and let’s get the process started.