A new report from OJO Labs lists Denver as the second most competitive housing market out of the nation’s 50 largest metro areas. Denver saw seven in 10 homes sell for above list price in April, second only to the San Francisco Bay area.
When it came to overall residential sales (detached and attached), the average home sale price hit $726,988 last month, a 3.46% increase from March, which climbed past the $700,000 threshold for the first time.
Interest rates had the most important effect on the supply and demand of homes last month, with interest rates on mortgages at approximately five percent affecting homeowners’ desires to sell right now. But with interest rates climbing, homebuyers are less likely to get into aggressive bidding wars, according to the report.
Meanwhile, buyers were still willing to pay well over the asking price to lock in their new homes, as has been the case for the past few months. The ratio of close price to list price for detached homes was 107.29%, according to the report.
While low housing inventory has plagued the housing industry so far in 2022, April was an improvement, as the Denver metro area had 610 more properties on the market this April compared to April 2021. Compared to a typical 8.59% increase in month-over-month inventory, April saw a massive 44.26% increase. At the end of April, Denver had 3,204 active listings, a 44.26% increase from March of this year, as well as a 23.52% year-over-year increase.
BOTTOM LINE: With inflation, higher interest rates, and high home prices, the market craze has subsided ever so slightly. Jan-March saw dozens of showings and dozens of offers. You should still expect to compete for a home, but perhaps against 2-4 other offers instead of 8-10 other offers.
WHY RENOVATING BEFORE SELLING MAY HAVE BIG UPSIDE
According to Lending Tree, Denver is the leading metro area for Millennial (people ages 25 to 40) home buyers outpacing Seattle and Boston with 63.63% of mortgages offered to them.These buyers, unlike their parents, are searching for move-in ready homes and are willing to pay well over asking for them. In many instances, millennials would prefer to pay a substantial premium for a move-in ready home, compared to home they would want to renovate themselves.The Denver market has been an extreme seller's market for over a year and Buyers generally flock to homes that are more turn-key. "It usually depends on the property, but the nicer homes – with an updated kitchen and/or bath – generally go for around 10-15% over asking... sometimes more! People spend so much time in the kitchen, so having something that is nicely updated will often sway someone's decision to purchase a home" says Theron Johnson, REALTOR® with Thrive Real Estate Group.
The 2021 Cost vs. Value Report from Remodeling Magazine shows that a midrange, minor kitchen remodel has an ROI of 72.2% — which is higher than the ROI for a major or upscale remodel.
Here are a few ways to give your kitchen a new look without sinking your ROI:
OUT AND ABOUT: JUNE EVENTS
Denver Juneteenth Music Festival - June 18th & 19th, 12pm-8pm
Juneteenth celebrates the day African Americans in Texas learned of their freedom two years after the signing of the Emancipation Proclamation. Celebrated in cities across the country, Denver is home to the Juneteenth Music Festival, a dynamic community event which annually attracts 50,000 people. In 2021, Juneteenth was recognized as a commemorative holiday by Denver City Council. Learn more about the festival here!
Denver PrideFest - June 25th & 26th
Denver PrideFest features a two-day festival -- the weekend kicks off with the Pride 5K on Saturday, June 25, followed by the two-day Denver PrideFest at Civic Center Park. The Fest includes over 250 exhibitors, 30 food & beverage vendors, and live performances all weekend long. Learn more here!
RECIPE OF THE MONTHWATERMELON MARGARITA
This simple nod to summer combines the best of traditional margarita ingredients and adds watermelon juice. The result is a lovely, summery cocktail that's also a show-stopper for entertaining. Make a pitcher and enjoy! INGREDIENTS:
FiveFour Real Estate is the one-stop shop for those who are ready to take their home or investment to the next level. Our name FiveFour derives from 5.4%: the average annual home appreciation rate in the US over the last 50 years. We know that your real estate investment is one of the largest and most important purchases of your life. With that in mind, our focus and strategy revolves around you. We hold our licenses at the brokerage Five Four Real Estate. If you buy a home and put 20% down, you are leveraging your money 5X. A 5.4% increase in your home's value means a 27% ROI.
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