Well, it’s November…and friends, we’ve just about made it through this crazy, never-a-dull-moment year that has been 2020. When the COVID-19 pandemic hit the U.S. in the spring, we were uncertain about the impact the crisis would have on the Denver real estate market and industry in general. Over the course of the last nine months, we’ve seen the Denver housing market not only survive, but thrive.
So, what’s the latest? What does it mean for buyers and sellers? And, what’s ahead for 2021? MODE Real Estate Founder Michael Madsen answer those questions and more below.
Q: According to the latest Denver housing market data, inventory remains low and demand is high for existing homes and prices are up more than 14% over this time last year. There is also exceptionally high demand for new homes. In such an atypical year otherwise, why is the Denver housing market booming?
Michael Madsen: Well, like many women in their eighth month of pregnancy, people want to nest. If ever there were a time to get cozy it is now…we really are safer at home, so why not have a great home? Mortgage interest rates are adding incentive to buy, especially to move up buyers who have equity in their homes, and can now qualify for a lot more house. Why not have some space to move around if you can? And finally, Denver is a great place to live. Our four distinct seasons and 300 average days of sunshine a year are very appealing….secret is out!!
Q: What other notable trends are you seeing here in Denver or elsewhere in the state?
MM: So much cash in the marketplace right now. Often times, it’s not the buyer’s cash, but a parent or relative, or 401K that was used to secure the house, and then a loan was taken out after the fact. That, and a lot of custom remodeling going on…if you can find a contractor! Also, lots of people buying vacation or second homes. We are now selling in Vail Valley and Summit County, so if you’re looking for a mountain getaway come see us!
Q: Is the Denver market unique when compared to other areas of the country right now?
MM: It’s not. This is happening everywhere, but seems to be even more amplified in the Denver real estate market.
Q: Winter is typically a slower season for real estate, but it doesn’t look like that will be the case this year in Denver. What advice do you have for your clients on both the home buying and selling sides?
MM: For buyers, stay vigilant. Don’t give up hope – keep checking the MLS portal and auto emails, and be ready to go look at houses at the drop of a hat. For sellers, if you’re planning on selling, get all the work done now. No reason to not capitalize on your best investment – homes that are well maintained and stylish sell for more money in a more timely fashion, and it bolsters your consumer confidence.
Q: When the market is highly competitive, what does MODE do differently to help give clients an edge?
MM: Well, I can’t give all our secrets away, but after a combined 25 years in the industry, our team has certainly picked up some strategies! Come step into a new mode of life with our firm, and we’ll give you that edge.
Q: What do you anticipate from the real estate market in early 2021?
MM: We anticipate that a shortage of inventory will continue, rising prices and low interest rates. My hope is that in the spring that will change somewhat, and more people will want to list their houses.
What other questions do you have about the Denver real estate market or buying real estate in Clear Creek, Eagle or Summit Counties? Leave your questions in the comments below or contact us – we’re here to help!