2013 Real Estate: Denver Bidding Wars!
The Denver metropolitan area is not only one of the most popular places to live in the state, but one of the most popular in the nation. For homebuyers looking to move into the area, this means they are in for some tough competition over the next few years.
The local real estate market in the Denver Metro area has experienced a 9% increase in sales prices since last year. The average sale price for February 2013 was $255,000, which is up in comparison to $235,000 in 2007. The inventory for February 2013 was just under 7,000 which is drastically low, when compared to nearly 25,000 during the same time period of 2007. To offset the lack of inventory in the Denver area, there are currently many new housing development projects underway that will bring some relief to skyrocketing prices
Recently, CBS News reported that housing prices are expected to continue to rise 3-4% over the next several years. With the increased velocity of the real estate market all over Colorado, many homebuyers are worried about overpaying for a home. This worry is only intensified by the possibility of going into a bidding war. Because of the extremely low inventory, many homebuyers are finding that they are having to compete for the same house and are often times paying more than asking in order to acquire it. Likewise, available homes are literally being sold within days of hitting the market. This is due to a very vigilant consumer population as well as eager professionals, referrals, and pocket listings.
Although overpaying is ample cause for concern, most professionals still say this is the time to buy because of low interest rates. With that being said, the buyer must beware that if they pay too much and are not willing to stay in the home long enough, they may end up losing money on the home if trying to resell to quickly. Homebuyers in Denver are advised to hold on to their 2013 real estate investments for 5-7 years in order to prevent taking too big of hit on resale.
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