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Buyer demand continues to sizzle even as more buyers are frozen out in a fast-paced market

Real Estate

Buyer demand continues to sizzle even as more buyers are frozen out in a fast-paced market

The Denver Metro Association of Realtors (DMAR) has released its latest residential market data for the metro Denver area. The current seller’s market continues to stay hot, even as many buyers continue to be iced out in this fast-paced market, according to DMAR. The underlying theme of the market is speed: speed at which buyers are purchasing relative to the number of sellers listing, and the speed at which active properties are going under contract while prices are accelerating.

In February, there were 3,641 closed properties, up 3.70 percent from last year at this time, and in part because attached properties were on the rise. Attached properties saw a 16.29 percent increase in closings relative to February last year. The increased demand for attached properties propelled the market to an average close price of $401,552. This is the first time the attached market has had an average price above $400,000. Meanwhile, detached properties saw a 1.80 percent decrease in closed properties relative to last year.

The DMAR report states that with properties frequently going for more than the asking price, full appraisal gap waiver appreciation continues to rise. Savviness, creativity, knowledge and guts are all components that will help buyers move toward a path of home ownership in this market.

A spokesman for DMAR said that seasonality, vaccines and interest rates will be a few of the best indicators towards a more normalized market. As more of the population gets vaccinated, we may see increased listings throughout the summertime. Most importantly, if interest rates start to increase, that may decrease buyer demand changing the quantity of multi-offer situations. While no one has a crystal ball, using market indicators, creativity and perseverance will help buyers succeed in this hot market

The luxury market (homes sold for $1 million or greater) posted 446 sold homes year-to-date, which represents a 62.77 percent increase in sales overall from February 2020. The luxury detached market alone closed on 206 homes, a 10.75 percent increase in this category from last month and a 46.10 percent improvement from last year.

An interesting trend appears in the attached market with the number of closed residences down from 29 sales in January to 25 in February. This was still more sales than last year, which was only 15 total for February. The attached market was also experiencing a much longer time on the market, up 337.50 percent from the previous month. In January, there was a median of eight days in the MLS, and in February, it jumped to 35 days.

The good news for luxury attached homebuyers is that you have options. Sellers should take their time to prepare the residence, and Realtors need to market appropriately rather than rushing to get the property on the market. It is essential to set the timeline of expectations for the sellers and establish a showing schedule that will work with their lifestyle.