A panel of real estate professionals helped us understand the market, answer your questions, and answer any questions you might have about Denver real estate.
DENVER – The Denver real estate market is hot, leaving many potential homeowners in the cold.
According to the latest monthly report from the Denver Metro Association of Realtors, real estate prices in the Denver metropolitan area rose faster than usual for a full year in April 2021. Average single-family home prices hit $ 580,000 – a record in the Denver metropolitan area, the report said.
RELATED: Latest Housing Market Statistics in the Denver Area: The Average Single Family Home Price Is $ 560,000
The more people that are removed from the price list, the more real estate agents say they are finding more potential homeowners broadening their views on what is desirable.
9NEWS brought together a group of real estate professionals through Zoom to help us understand the market, answer your questions, and weigh every aspect of Denver real estate.
> Check out the full conversation below:
“It’s almost as if the list price is now considered the base price. It’s like the initial auction price, ”said Compass Realtor Kelly Moye of Zoom. “If you can afford $ 600,000, go ahead [$500,000] So you can play the game and bid. “
In this Denver real estate crisis, homebuyers are paying thousands over the asking price to even play ball.
RELATED: 3 Denver Area Couples Share What It Is Like To Buy A Home In This Insane Real Estate Market
We had to ask our panel of real estate experts what has been the wildest offering from their clients lately.
“I got one! The craziest thing I’ve ever seen: a property was listed for $ 545,000 and the buyer offered $ 625,000 with a $ 75,000 valuation gap and didn’t get the offer,” said Muriel Williams, president of Denver National Association of Real Estate Brokers In fact, the bid that won was over $ 120,000 above the bid price. “
There are fewer than 2,000 properties for sale in the Denver area, according to the Denver Association of Real Estate Brokers.
Despite this imbalance between supply and demand, a new report from California analytics firm CoreLogic claims that real estate prices in the Denver metropolitan area are the most overvalued than any other city in the country.
“It’s hard to say that having so much competition for any property is overrated,” said REMINGO real estate agent Matthew Leprino.
So how can you compete? How can buyers prevent homes from selling over thousands when they are selling for thousands more than they are listed?
“This conversation has to take place at the very beginning,” said Nicole Rueth, Branch Manager at Fairway Mortgage. “If it’s a $ 500,000 home that you are selling for $ 650,000, what if that assessment doesn’t come in?” and you have to come up with the money? What about your reserve? “
The lack of affordable housing means that people and families with lower incomes are priced out and the fabric of the neighborhoods is completely changed. This turned out to be a hot button problem with our panel.
“It’s absolutely something we need to address, and I think our government – city, county, and state – can examine options to provide more affordable housing,” said Mike Papantonakis, chairman of the Denver Metro Association of Realtors. “I looked at statistics from the owners meeting that I attended [recently] in the, [and] Land accounts for about 30% of the cost of a house. We know that there is a lot of land owned by the government, whether it is a city, county or state, that is really not being used the way it could be used. “
Colorado’s affordable housing shortage is pushing everyone together – well beyond the front range.
“I had a client who said, ‘Hi, I want to look at this property’ and I had to google the city,” said Leprino. “I’ve been in this business for 26 years that I’ve never heard of the city. It turns out to be south and east of Strasbourg. I hadn’t heard of it, but now I have it!”
With prices soaring and the frantic pace of our current marketplace, many potential homeowners are thinking of waiting to dive into the buying game: a huge mistake, according to our experts.
“It’s almost like that, can you afford not to get into the game?” Asked Verne Harris, the owner of the Public Realty Company. “If you’re out there on the fence and can afford it, you were probably the same person. Last year we said the same things when you could have got the house for $ 100,000 less than now. So who should say next year, there won’t be another hundred thousand. The more you sit back when you’re not in the game, the more it could hurt you. “
We also asked our panel viewer questions submitted on our Facebook page.
Check out the entire panel discussion for additional advice on how to get into the game, set up your cash account, and how to make your offer stand out from the crowd without offering an exorbitant amount of money.
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