Getting your player ready...
How should you be playing your own part of the market, after a year when Denver has seen its first sizable increase in the median price of a home in five years?
Start by keeping in mind that the Mile High City is an unusual market: the downturn here began earlier, and never plunged to comparative depths that Las Vegas, Miami, Phoenix and California cities did. That’s good to keep in mind as you read how well some other markets are performing. We’re not topping the “best” lists right now because we’re climbing out of a shallower pit. That said, inventory in Denver is down drastically – so much so that analysts say that we’ll have a hard time keeping the same pace. “Don’t expect 20% increases in numbers of units sold for 2013 over 2012,” warns Jack O’Connor, broker/owner of The Denver 100 Real Estate. This past year, he explains, saw unusual numbers of buyers able to make a move, after the most negative effects of the downturn had run their course. Meanwhile, many owners still aren’t seeing the value that would get them to put their home on the market. If you’re owner of a home valued under $300,000 you’re in the best shape; most of the inventory that disappeared has been in your price range, and your increase in value has likely been the best. You’re probably seeing strong interest; and there’s not much reason to anticipate the market will get even better later in the year. If you’re looking to buy in that range, expect a competitive situation, particularly in areas with lots of amenities. One thing in your favor is that builders are ramping up production that will add supply metro-wide; but prices are going up, too; already clearly seen in the direction over past months. If you’re the owner of a more expensive home, your situation is more dependent on price and location. Best situations, agents report, are closest to the center city, where buyers keep their commuting costs down. In closer-in suburbs, as well, homes in the low-to-mid ranges are selling well if they’re priced right and in good condition. In the higher ranges further out from the city, inventory isn’t much different; and values haven’t increased much. That creates two possibilities: If you’re in a situation to take a hit on your old place and make a move up or over, appreciation will likely be better on the new than on the old. However, if you’re not in a position to sell, you’ve got to tough it out a while longer. Take heart from a job market that’s getting a little stronger, and from Denver’s growing prominence as a place with a healthier lifestyle and new infrastructure. Good things really are coming our way.
