Despite the recent snow and cold, the spring selling season for homes is well underway – and doing even better than predicted.
“The spring market is here and is outperforming expectations,” writes Libby Levinson-Katz, chair of the Denver Metro Association of Realtors (DMAR) Trends Committee in the DMAR’s monthly report. “…Sellers who jumped into the market are reaping the rewards with the return of multiple offers and more seller-friendly terms.”
And while bidding wars aren’t as prevalent as they were last spring, notes Levinson-Katz, “they are on the rise again for turnkey homes that are new to the market.”
The heated activity in Denver’s housing market continues to be fueled by low inventory. Even though by the end of March active listings for single-family residential properties were up 19.53% over February—to 4,516—that number is still a fraction of the historical average number of listings for March: 13,609 (since record-keeping began in 1985).
The low inventory, “coupled with continued buyer demand,” writes Levinson-Katz, sparked price increases —average closing prices rose 1.44% from February to March, to $665,390. It has also contributed to homes selling faster. It took 22.92% fewer days to sell a home in March than in February, with homes spending an average of 37 days on the market.
While statistics indicate that we’re in a seller’s market, the DMAR report notes that rather than snapping up homes in a frenzy typical of the past, buyers are making thoughtful moves. “Buyers are more hesitant to overpay for a home,” notes the report. “Instead, they are getting more creative with offers by paying fees traditionally associated with the seller like title fees, portions of 2023 taxes and transfer fees. “
They are also “keenly aware of Denver’s seasonality,” adds Levinson-Katz, and realize that more homes will come onto the market as summer approaches.
In fact, that time might be just around the corner—that is, if sellers are paying close attention to the DMAR report. In an interesting aside, DMAR notes that Realtor.com, using historical data, predicts that the best time to sell in 2023 is just weeks away: April 16-22.