It’s hard to find any kinks in the Denver-area home selling market. A recent report by the Denver Metro Association of Realtors shows the market was nearly bulletproof in April.
Home prices were once again in record territory, showing double-digit gains on a year over year basis. Homes are selling fast, spending an average of just 31 days on the market before being placed under contract. With a mere 5,221 unsold homes on the market, there is less than a 6-week supply of inventory. While that is about 4% more than a year earlier, the truth is that market could easily handle 15,000 or 20,000 homes.
The market also is experiencing its typical, seasonal pick up, as 12% more homes hit the market in April than in March. And 9% more homes were placed under contract last month than in the previous month.
You may have heard about a recent media report stating that 23% of homes placed under contract last month failed to close. But don’t worry.
Many Realtors find that it’s not unusual for 10% to 20% of homes placed under fail to close. So while 23% sounds ominous, it’s probably nothing out of the ordinary. What the report did not state is that most, if not all, of these homes were quickly snapped up by another eager buyer.
One veteran broker put it this way: “I can say with a fair amount of certainty, that 100% of those homes were sold to the next person in line, within a day or two.”
After all, in a market where it’s not uncommon to have 15 or more people bidding on a home, if the first deal falls through, your broker’s response is simple: “Next.”