Denver Housing Inventory

The current state of the economy has brought about many changes in the housing market, and one of the most notable has been the decrease in available inventory. This is especially true in larger metropolitan areas, where the number of homes for sale has dropped significantly over the past few years.

In contrast, the Denver housing market has seen a surge by nearly two-thirds between the months of May and June 2022. Additionally, twice as many Denver homes remain available on the market compared to last year. Nonetheless, while this may seem like good news for buyers, it’s actually driving up prices and making it difficult for many to find affordable homes, especially with high inflation and mortgage rates.

No One’s Market

Most of the time, a surplus on properties on the market means that it’s a good time to buy. In fact, buyers would have about 6,000 listings available to them at the end of the first half of 2022, which is significantly higher compared to the nearly 1,500 selections at the start of the year.

Sellers typically would have been competing among themselves to offer the best price and terms, while buyers can be more selective about what they want. But in the Denver housing market, it’s neither a buyers’ nor a sellers’ market — it’s a no-one’s market.

In the Mile High City, inventories are going up because buyers are no longer confident in purchasing properties due to high homes for sale Denver prices and high mortgage rates. At the same time, many homeowners are not eager to sell their homes and take a loss. So, they stay put. The result is that there are more houses on the market than there were before, but not enough to make it a buyers’ market.

What To Expect

The current inflation and, consequently, high mortgage rates, have led to a surplus in the Denver housing inventory. As such, many people are still waiting for the perfect time to buy a house.

The extra inventory will definitely impact prices, as buyers will have more power in negotiations and be able to choose from a larger selection of properties. It will also affect the time it takes to sell a home as well as the balance of power between buyers and sellers.

The average home for sale listing time has increased to 10 days on the market, which is about the same as last year. However, it could go up even more in the next few months as we enter the traditional slow season for home sales.

As for the price, homes may see a continued rise in value. Last June, it was reported that a single-family home rose to 0.58% on the month and 12.3% for the year, bringing it to a median price of $673,873. This figure could potentially rise in the near future as more people are priced out of the market in other states and cities.

What You Can Do

Even if the market might seem bleak, things can still turn around. As such, you should make yourself ready in case a housing opportunity comes along. Here are some things you can do:

Know Your Priorities

Your dream home might be filled with the ideal furnishings and layout that you’ve always wanted, but if it doesn’t suit your needs in terms of size or location, it may not be the best option for you. Before you start searching for a home, sit down and make a list of your top priorities.

Do you need a certain number of bedrooms and bathrooms? Is a certain school district important to you? Do you need to be close to public transportation? Once you know what’s most important to you, you can start narrowing down your search.

Expand Your Search

Other times, a neighborhood might just be out of your reach financially. As such, you can try looking at homes in surrounding areas that are a bit more affordable. This is also a good way to find a neighborhood that you really like and then look for a home within your budget once you have saved up more money.

In Denver, Montbello, Mar Lee, and Indian Creek are some good examples of affordable neighborhoods that are close to popular and expensive areas like Lowry, Stapleton, and Park Hill. This way, you can still be close to the action, but you don’t have to spend as much money on your home.

Apply for Pre-Approval Immediately

You should also consider processing and getting pre-approved as soon as possible so that you’re not left scrambling when you do find your dream home. This will give you a much better idea of how much house you can afford and what kind of loan terms you’ll be able to get.

Takeaway

The Denver housing surplus would be advantageous for buyers if the economy was stable. Nonetheless, there are things you can do in preparation for buying your dream home. It’s also good to stay updated on real estate news in case there’s any movement in the market.