Spring is in the air, and homebuyer demand is creating record-high competition for houses priced well above $1M. One recent sale in Denver’s coveted Wellshire neighborhood recently sold for $150,000 over list price and was off the market in under 72 hours. Buyers are being required to bring more cash to the table to cover appraisal gaps in full, take bigger risks like waiving inspection objections, and offer the seller more assurance by forfeiting some or all of their earnest money if they back out of the deal.
The Denver Metro Association of Realtors just released its February 2021 sales report. Besides the continued squeeze on housing inventory, which only seems to be worsening amid spring demand, here are some of the key takeaways:
- Some listings are now seeing 100 or more showings over a weekend and have 20+ offers.
- In years past during the spring buying season, homes might get bid up 3-5% over the asking price. We’re now seeing 15-20% over asking in some of the most competitive price points.
- The only market in Colorado considered a buyer’s market right now is the downtown condo market, but prices are on the rise. Now may be the time to buy before life starts to return to normal and people want to be close to restaurants, events, museums, and other attractions.
- Denver home buyers aren’t the only ones losing out in multiple bid scenarios. Nationally, 44% of buyers cite being out-bid as the #1 reason they have been searching for 3 months or more.
Sherri Stinson is a Colorado Real Estate expert specializing in residential sales, new-build communities, and investment properties along the Front Range. Sherri helps both buyers and sellers achieve their unique home goals, and her nuanced approach offers a distinct advantage to her clients.
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