DENVER - The real estate market in Denver has been through an incredible journey over the past decade.
Coloradans watched values skyrocket from 2005 to 2007. They watched the foreclosure virus strike thousands of homeowners who bought homes with mortgages they may not have completely understood. As result, values plummeted across the Front Range beginning in 2008.
Now that Coloradans have enjoyed roughly five years of market appreciation, many are asking, "is now a good time to sell?"
The average sale price of a home in Denver according to the local MLS is up approximately 50 percent in the past five years and 30 percent in the past three years. This makes it easy to say "Yes, one should sell."
This has been fueled largely by the supply of properties available for sale steadily declining over the past eight years.
Simply put, falling supply coupled with stable to increasing demand has been driving prices up.
Next, mortgage rates remain at historically low levels. Right now, rates on a 30-year fixed rate mortgage are around 4 percent. The average since 1976 has been 8.6 percent. This means that buyers today can afford more home than they could in the past when rates were much higher.
And, while rates are low now, most economists believe rates will be on an upward trend in the future. This would mean that buyers could afford less home in the future assuming the same monthly payment. This reaffirms that NOW is an ideal time to sell your property.
Another reason to sell your property now is that because of the dramatic appreciation in the average sale price over the past 3-5 years, you likely have a lot more equity in your home than you ever imagined. This equity can help you if you are looking to move up, move down or move across town.
But, before you get too excited about selling your property, I believe it is critical for you to be crystal clear as to why you want to move. Maybe you are having another child and you need a larger home. Or, your children are moving off to college and you need a smaller home.
Finally, and I cannot stress this enough, hire a full time, experienced, professional Realtor. Because we are experiencing a shortage of properties available for sale, we are seeing many properties receive multiple offers. Having a seasoned pro in your corner to help you navigate such a process is invaluable.
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