2013 – The Year of the “Under Contract”
It was a great year in 2013 if you were a Seller and a difficult, at times excruciating one, for Buyers. Sellers were treated to multiple offers and selling over list price and getting to pick and choose which offer to accept. Buyers were left scrambling to get to a house first, get their offer in and hope that they won the competition.
It hasn’t let up either. Just last week we had the privilege of bidding on another home for buyers we’ve been working with for over a year. Believe it or not it was the only detached home for sale in all of Louisville under $450,000! The only one! (Is that even possible?) What fun….for the seller….but not for our buyers, who made their best offer at $16,000 over the list price and didn’t get it!
The driver behind all of this is Low Inventory. Here’s an astounding statistic for the Denver Metro Area.
- In 2007 there were 38,000 homes for sale
- Today there are 8,500 homes for sale
In 2007, with lots of foreclosures happening, tons of houses for sale, nothing selling and prices dropping fast we thought we’d never get rid of all that housing inventory. Well….we did! In a big way. So now we have the reverse situation….Extremely Low Inventory, which has of course affected prices. People in Longmont, Erie, Broomfield and Lafayette are saying, “It’s about time!”.
- Boulder + 10%
- Broomfield +9%
- Erie +5%
- Lafayette +7%
- Longmont + 12%
- Louisville + 15%
- Superior + 7%
- Mountains + 9%
- Plains +12% (Gunbarrel, County)
Wow!! Those are some hefty increases. As long as inventory remains low, the trend should continue. But, as we all know, things change and seek equilibrium. Inventory will probably come up this year as more sellers realize the market has shifted and they can finally sell their home without losing money, or sell for a profit. As that happens, price increases should moderate and Buyers may find some relief with more houses to choose from and a less frantic market to operate in.
Tune in next time for the 2014 Market Horoscope!