The active listings in Cole & Whittier are very low right now. We currently only have 11 Active properties in both neighborhoods! There are 25 properties under contract but we haven’t seen much new inventory to take the place of the properties going under contract. This data isn’t too concerning considering it’s only mid February but hopefully in the next month we will start seeing at least 20+ new listings hit the market each month. If we do not start seeing quite a bit more inventory hit the market then we can certainly expect the fierce competition for buyers as we saw the last 2 years. A balanced market consists of approximately 6 months worth of inventory. Based on data, our neighborhoods have 3 months of inventory but I feel this data may be a bit skewed since we only saw 9 sold properties in January. Much of the Denver metro market is seeing only 1-2 months of inventory which means a Sellers market.
Here are 2 new listings that have come on the market in the last week:
5258591 3152 N Marion St $405,000 3/2 1,249 SF $324/PSF
6848764 3763 N Franklin St $250,000 2/1 1,061 SF $235/PSF
We are still continuing to see desirable properties that are priced well flying off the market in a matter of days. I recently had a listing in Aurora and my sellers received 11 offers in 3 days! Due to the low interest rates and the rising rental rates we are continuing to see new buyers flooding the market every month. Until we have enough inventory to satisfy the need we will continue to see multiple offers with properties selling for well over list price.
In January we only saw 9 sold properties in Cole & Whittier. This low number primarily has to do with the time of year. We traditionally tend to see less activity and therefore less closings in the winter months. As the warmer weather and longer days approach we will certainly see an uptick in new listings and consequently more sold properties.
Here are a few properties that sold in January:
8113048 3424 N Vine St List $449,500 Sold $440,000 2/3 1,742 SF 40 DOM $252/PSF
9748127 2439 N Vine St List $334,900 Sold $330,000 2/1 1,253 SF 49 DOM $263/PSF
6766144 1777 E 39th Ave #310 List $230,000 Sold $240,000 1/1 795 SF 2 DOM $301/PSF
There is definitely still a big correlation between DOM and sales price. Properties that are only on the market for a week or less tend to sell for at or, more frequently, over list price. That is why, especially in this market, overpricing can be detrimental for a seller. If a property is on the market for more than 2 weeks then buyers start wondering what is wrong with the property and the seller will ultimately need to either A.) do a price reduction to entice a buyer or B.) wait for the market to “catch up” to meet the price of their house. Usually option B isn’t a luxury for many sellers, especially if those sellers need to sell their current home in order to purchase a replacement. Therefore, pricing competitively is still the best way to secure multiple offers which in turn leads to buyers bidding the price up.
Here are some year-over-year comparison data for Cole & Whittier:
Jan 2016 vs Jan 2015
Avg DOM 69 39
Median DOM 49 26
Sold price Avg $349,722 $447,700
Sold price Med $362,000 $424,000
List/Sold % 98.4% 98.1%
PSF $254 $223
Sales Volume $3,147,500 $3,133,900
# of sales 9 7
Months of Inventory 3 2
The figures above still show an increasing market primarily because the price per sq ft (PSF) has increased year-over-year. Many of the other figures are reliant upon the price point of the homes currently listed.
The Cole & Whittier neighborhoods are still very much increasing in value. There are many new redevelopment projects on the horizon which will continue to make our neighborhood very desirable. We can look forward to the light rail train from Union Station to DIA opening this spring plus the new pedestrian bridges will be completed which will help unify businesses on Brighton Blvd to our neighborhoods to the east of the railroad tracks.
As a current homeowner I would suggest talking with your real estate professional to find out the value of your home. If you haven’t looked into this recently I am sure you will be pleasantly surprised with the equity you have accumulated. This may be a deciding factor for whether or not 2016 is a good year to list and make a move. As a buyer looking to move into our neighborhood I would suggest setting up your own search so you are notified immediately of new listings. I’m sure this spring will be just as frenzied as last year so making sure you are pre-approved early will give you confidence to make an offer if you find that perfect home. Being prepared and staying motivated will help you stay ahead of the market and ultimately find your dream home quicker!
*Not all properties were listed and/or sold by 8z Real Estate. This data is based on content supplied by REcolorado, IRES, PPAR, and/or MLSListings. Content is deemed reliable but not guaranteed. Content may not reflect all real estate activity in the market.