Low Housing Inventory Fuels Bidding Wars
Lisa and I just had our craziest Cinco de Mayo ever, and it didn’t involve a drop of tequila or a single cerveza. While most were enjoying the derby / furry scurry / cinco de mayo weekend, we were attached to our phones fighting multiple bidding wars for buyers and sellers. This market transitioned from frio to caliente muy rapido!
One of our clients competed against four other buyers for a home that based on recent sales data was liberally valued around $390,000 and was listed at $420,000. After seeing how overpriced the home was, we asked the seller’s agent for her pricing analysis and her response was, “you’re on your own.” Another one of our buyers submitted a fair value offer on a home that was slightly over-priced only to compete against two other buyers. Two of our listings had multiple offers and both will be under contract today. Pricing homes based on recent sold data appears to have been thrown out the window this weekend.
Denver MLS just released the sales data for the month of April. Inventory is down 53% compared to this time in 2010. In addition, fewer homes were on the market in April than in March. Historically we should see around a 5% increase between those two months. If you’re moving to Denver and need to buy a home then you may want to rent and watch The Alamo to prepare.
We don’t want to come across too bullish, because we believe that this market holds a lot of inventory on the sidelines that will soon be listed as word gets out. However, if you are thinking about selling your home and can afford to price it somewhat reasonably then now is the time to be on the market. No more siesta amigo.