The average discount on homes that have sold in Denver this year in at a all time low. Currently, the metro Denver inventory is at a 23 year low while the number of active homes on the market is down over 30% since the same time last year. There is also a greatly reduced days on the market and homes are getting multiple offers.The number of homes sold went up a surprising 17.56%. Currently, there are about 7,000 homes on the market which is equal to about a one months supply of inventory.
This is important information for buyers to help them make better decisions when making offers to purchase homes. Gone are the days when you had a lot of homes to choose from and plenty of time to make a decision. Buyers need to be able to be one of the first to view a property when it comes on the market and also be prepared to make a strong offer the first time. They also need to be in a strong financial situation so that they can be competitive and not ask for a lot of financial concessions.
It is not easy for sellers either. Sellers can price their property competitively, get multiple offers and pick the strongest or even highest offer. The problem that may arise is that the banks appraisal may not be supportive of the higher offer as there are no comparable properties at that price point for the appraiser to use. Then the seller has to see if the buyer has the funds to pay over the appraised price or reduce the price to the appraised value. When home values move upwards quickly, the appraisals seems to drag behind the new market trends. This may make the selling process frustrating to both buyers and sellers until the market shows this trend is not just a temporary market adjustment.