When Is The Best Time To Sell Your Home?
In a normal pandemic free year, the market would be cooling by now – 2020 is not a normal year. The best time to typically sell your home in Denver is April or May. This year, the best time to sell your home might be right now. Following are 6 reasons why now is a good time to sell and why this window of opportunity might not last much longer.
6 Reasons Why Now Is the Best Time To Sell Your Home In Denver
1. Supply Of Homes For Sale Is Low
In the Denver metro MLS over the past 5 years, the average number of single family homes available for sale at the end of July / start of August was 8,199 and rising. This year, there are only 6,247 which is a decrease from last month and 24% lower than average.
2. Demand For Homes In Denver Is High
In each of the past 3 months, over 7,000 single family homes went under contract throughout the Denver metro MLS. The last time over 7,000 houses went under contract in one month was never. Average days in MLS (days on market) for July was only 28.
3. Home Prices Are At All Time Highs
The median sales price for single family homes sold in July (under contract in May & June) was at an all time high of $489,700. This record number is an increase of 5.3% from the prior month and 8.8% higher than July 2019. When prices are at the highest they have ever been, this is an indicator that it is a great time to sell your home.
4. Interest Rates Are At Record Lows
Freddie Mac started tracking interest rates in 1971. Prior to now, the lowest rates were between November 2012 to June 2013 when mortgage rates were at 3.31%. Today, average 30 year mortgage interest rates are at about 3.1% and some buyers are getting rates in the high 2’s. The highest 30 year mortgage interest rates have been since 1971 were in October 1981 when mortgage rates were at 18.63%.
Putting that into perspective, principal and interest payments for a $100,000 loan would be $427 a month today, whereas in 1981, monthly P&I payments would have been $1,559.
5. Public Schools Are Offering Remote Learning
Why is this a factor when determining if now is a good time to sell your home? The start of the school year typically kicks off the decline of our spring selling season. Many parents don’t want to move while their kids are in school. If students are engaged in remote learning, they can remain at the same school without worrying about the commute.
6. My Listing Fee Is A Low 4.8% - Total
You will keep more of your equity when you sell for a record high price and in a short amount of time. While 1.2% might not sound like a big difference, a seller who sells at the median sales price of $489,700 will get almost $6,000 more by using my services than if they were to pay 6% elsewhere.
How Much Longer Will It Be A Good Time To Sell Your Home In Denver?
During July, showings per listing was the highest it has been in at least 11 years. This tells me that the fun is not over yet as there are still a large number of buyers out there looking for their perfect home. We are still seeing multiple offers and homes selling during the first few weeks on the market, especially for homes priced under $500,000. I don’t know how long this hot market will continue, but I do know that if you have been considering selling – now is the best times ever to sell your home in the Denver area. We will start our seasonal slide soon and historically, we don’t catch the previous years high point until March.
How Do You Learn How Much Your Home Is Worth During This Hot Market?
I market homes using cutting edge technology, proven strategies, and decades of networking contacts. Virtual tours, professional photography, and social media marketing are all a part of my comprehensive marketing plan which you can learn more about here. If you have questions about selling or the value of your home in the Denver area, reach out to me to schedule a free, no obligation, in home consultation. You can call or text me at 303-564-4055, send an email to Nathan@NathanSellsDenver.com, or click on the red contact button below.