Well, we made it. All we wanted at the end of 2020 was to be able to write “2021” wherever we write down dates. It felt good. It feels good. While the world has been slow to catch up with the calendar (lots of 2020-type days, still), the symbolism in that “’21” feels right. It feels like the daffodil poking up from beneath all the smoldering rubble.
Anyway, enough with symbolism and cliched imagery. Happy New Year to all, and we hope this month’s market update finds you well, safe, and healthy. We’re all doing great over here at BSW Real Estate. Perhaps you’ve caught wind that we grew quite a bit on the first day of 2021; we merged with A-Squared Real Estate, and have been working on many, many new programs, systems, and structures meant to support our agents, and you, our clients! Details are all over our social media, so go check them out!
Okay, on to our market. Prior to December 2020, the lowest amount of inventory actively for sale in the 11 County Metro Area was 3,200 total between Detached Single Family, and Attached Single Family. December 2020 shattered that record, and several others. On December 31st, 2020, there were 2,541 homes for sale in the entire Denver Metro Area. 1300 of those were Detached Single Family homes.
If you want some context as to what exactly that means, check in with one of your friends who’s buying a house, and ask them how it’s going. What they’re going to tell you, once they stop crying, is that it’s really hard. They’re going to tell you that they’ve submitted 4-5 offers, all of them well over asking price, all of them surrendering inspection rights, and all of them promising to bring more money in case the house doesn’t appraise for the purchase price…and they all got beat out.
There are a few very important things to understand when you’re entering this market as a buyer. First, it’s going to be hard and it’s going to cost you more than you thought it would in terms of time, money, and emotional stamina. It’s really, really hard.
Second, it’s not that there’s a deficiency in listings, it’s that there’s a massive surplus of buyers. We had more transactions in the metro area in 2020 than we ever have. Listings are coming on the market faster than they normally do. But, with ultra-low interest rates, buyers of all shapes and sizes are able to find ways to make their home purchase affordable, so they’re eating up inventory much quicker than metro-area homeowners are able to get their homes up for sale. It will be of the utmost importance that you strategize early and often with your favorite Realtor regarding how you’re going to get the house you want when you find it. In all likelihood, you’ll be competing.
Look, it’s an insane market, and there are myriad challenges for buyers and sellers alike right now. But, the benefits of participating in this market make taking the chance more than worth it. As always, feel free to reach out if you’d like to chat more about your needs. We’re here to help however we can. Until next month, stay safe, stay sane, and stay well! Cheers!