The Mile High City is booming, and with good reason.
Metro Denver alone has been consistently growing since the 1930s. It boasts a median household income almost 16% higher than the national median income.
And then there are the mountains that provide a breathtaking backdrop, the hundreds of attractions and the mouthwatering foods.
It comes as no surprise that people are flocking to Denver from all sides of the country, which leaves you at quite a loss.
After all, you’re looking for your dream home, but how do you even begin finding it in all the chaotic real-estate scrapping?
It’s difficult, but it’s not impossible. If you keep these 10 tips in mind, you’ll be ahead of the game in sifting through the houses for sale in Denver.
Stick to it and you’ll be sure to find your own perfect Denver dream house.
The Overall Picture
The housing market is hot in Denver.
It’s a great place to live and offers more things to do or visit than any family could possibly hope for.
But it’s gaining a lot of attention.
Buying a house in Colorado may be more difficult than previous years as the demand for housing soars. Unfortunately, the amount of property for sale can’t quite keep up with the trend.
That’s leading to higher selling prices and higher mortgage rates. In fact, in May 2018 long-term mortgage rates jumped to their highest levels in seven years.
Demand continues to climb along with rates, but the price growth rate is finally slowing.
What You Need to Know About Houses for Sale in Denver
1. Buy Now
The market is hot right now, and while it may cool off eventually, a bit of research will show you that housing prices in Denver are only climbing.
So while it may seem expensive at present, houses may only get more pricey later.
What’s occurring is an infinite loop of stationary homeowners. They see the demand, but realize they won’t have enough money to purchase a house elsewhere in Denver if they do bother to sell their property.
So they remain, which means few houses go up for sale.
In fact, the US Census Bureau reports that almost 80% of citizens across Denver County were living in the same house they were the previous year.
While development projects may be occurring to meet demands, if you find a decent deal, now is the time to spring on it.
2. Limited Housing
At the moment, there is a high demand for real estate and not enough houses to fill it. That means you’re up against stiff competition: people who can pay in cash, couples with flawless credit and those willing to waive appraisals will be hot on your heels.
But that also means many people will give up the hunt altogether.
In fact, rental rates have increased so much that Denver’s population of renters may soon outnumber the percentage of homeowners. A recent study by RentCafe indicated that 47.1% of Denver’s population was comprised of renters in 2016, compared to the 52.9% of homeowners for that year.
Other sources claim people are staying in their home an average of eight years.
With the race for the perfect dream home, the peak season for real estate in Denver keeps stretching across the calendar.
But that doesn’t mean there aren’t slow times, too.
Consider making an offer during holidays or the early winter months.
Sales and Marketing Executive Julie Montgomery writes, “Even though you may not want to move in colder temperatures, odds are you’ll be able to buy a house for less money with less competition.”
4. Mortgage Rate Levels
Interest rate levels are a bit all over the place, as you’ll soon see.
For 30-year leases, the interest rate actually fell in December of 2017 after reaching a yearly high, hovering at about 4.06%.
However, the mortgage rate for 15-year leases increased to 3.58% that same month.
Then they spiked again in 2018.
In general, mortgage rates are hard to predict here, but it’s a safe bet they will continue to climb, albeit slowly.
5. Hot Places
The Denver-Boulder area is hot on the market right now, with 318,634 people having moved to the area since 2010.
Colorado Homes & Lifestyles also lists Cherry Creek, Sunnyside, City Park, Belcaro and Washington Park as areas where demand is high.
Expect higher prices in these locations. To give you an idea of what we’re talking about, you need only consider Cherry Creek’s median home value of $761,500.
6. Smart Locales
But there are plenty of places where the houses for sale in Colorado won’t completely empty, incinerate and blow away your wallet.
Look for development projects, more of which are cropping up as the real estate warfare surges.
However, keep in mind that construction companies are being cautious; they don’t want to build without profit, and they want to ensure they’ll have jobs in the future. It’s part of the large loophole that Denver seems to be stuck in presently.
7. Old Houses
Many of Denver’s houses are old, adding to the city’s unique charm. However, that also means you may have more options on the table than you see looking at an ad.
Take, for instance, the home at Four Mile Historic Park, which was built in 1859.
We’re not expecting you to purchase a 200-year-old house, but age is something to consider here.
Houses like these are bound to have some type of issue. Regardless of whether it’s structural questions or maybe restrictions because of its historical value, these age-related problems can give you some push-back when negotiating prices.
And don’t be fooled by the scrambling buyers; selling a house is no fun, and most owners will be reluctant to go through the whole process again with a different bidder.
So, yes, negotiations should be on the table.
8. Backup Buyers
Yes, it’s a real thing.
Don’t lose heart if that dream house is being offered to someone else. Instead, try to gain a position as a backup buyer.
If the seller or realtor is asking for one, chances are they’re expecting the original bidder to fall through.
Nearly one in five bidders will retract their offer for a house, leaving both real estate agents and sellers at a loss. Consequently, more and more are turning to this process to ensure smoother transactions.
You can’t forget about what comes outside of the house! After all, you’re moving to Denver!
Buying a house in Colorado offers more than the usual amenities to its citizens. Be sure to see what’s near the house you’re interested in.
Consider work, entertainment and accessibility for your daily needs.
10. Ears Are Everywhere
One final note of warning: while you’re perusing the house, be careful what you say and do. The owner may be watching.
More sellers are using cameras to watch potential buyers, and they may base offers off of their findings.
Because Colorado is a one-party state, it only takes the consent of the person giving the tour for everyone there to be recorded legally.
So wear your best attire and slap a smile on that face.
We’re Here to Help!
Purchasing a new home can be an overwhelming experience, especially when considering the nuances attached to the houses for sale in Denver. So why not hire a little extra help from a top-producing luxury real-estate agent?
Contact us today to turn your dream home into a reality.