Madison & Company Properties | 2015 First Quarter Market Report
Learn the latest real estate news from Leverage Partner Madison & Company Properties, LTD., who recently released their 2015 first quarter market report with statistics and analysis covering the Denver, Colorado real estate market.
During the first quarter of 2015, Sellers in Denver found themselves in a better position of negotiation leverage with potential buyers than ever before during a challenging start to the year. As fruitful as it may have been for sellers, who previously found themselves underwater in home values just a short time ago, Buyers found their experience in the market to be extremely frustrating and many were left missing out on homes if they were not willing to pay more than the list price or waive crucial contingencies in the contract.
There are reasons for the shortage of homes to buy. Many Sellers can sell but will have no options to move into once they do sell their home. After surviving the Real Estate and financial crash of just a short time ago, many Homeowners are adjusting to a new approach to owning a home and are no longer leveraging the equity in their home as a stream of income.
An interesting trend in the market is that nearly 15% of contracts are terminating prior to closing. This is obviously a trend that we do not want to continue but as long as Buyers are being forced to make instant, emotionally charged decisions, this will continue to happen.
The average home (condos and single family) is selling for $356,000 while a detached single family home is closing at just under $400,000. This is an all-time high in the metro area and is an increase of 9.8% from last year, tops in the nation. Average days on market is also at a low point with most homes selling under 30 days.