There's only one word to describe the real estate market in the US right now: hot.
In March 2021, Google searches for the question, "When is the housing market going to crash?" spiked an astounding 2,450%. The same news report states that 42% of US homes are selling for more than their listing price.
What's behind these exciting housing market trends? Most importantly, what does it mean for you and your Denver property? We'll discuss the answers below, so keep reading!
What's Happening With the USA Real Estate Market?
After the economic downturn of 2020's pandemic, the US real estate market (and the economy in general) is bouncing back nicely.
Inventory is still in short supply, with many homes receiving dozens of offers shortly after listing. Meanwhile, mortgage interest rates hit near-historic lows at the end of 2020 and have only risen slightly since.
What's the result? Despite a lack of inventory, buyers are still being enticed by nationwide low interest rates. And sellers won't have to wait long after listing their home — the average time on market is 32 days shorter in May 2021 than it was in May 2020.
Housing Trends to Look for in 2021
Although many people have returned to the office, working from home has become the new norm for many families. Because of this trend, buyers are eager to upgrade their living space. People are flocking from urban areas to suburbs seeking bigger kitchens, extra bedrooms, and larger backyards.
Experts predict more inventory will come on the market as 2021 continues, but the demand is expected to remain higher than normal. At the close of May 2021, there were 50% fewer homes for sale than last year.
Nationwide, the average asking price hit an all-time high of $380,000 in May 2021. In towns like Rochester, New York, and Columbus, Ohio, the median time on market was 11-13 days. Meanwhile, Denver homes were selling in an average of 14 days.
Housing Market Trends in Denver
Speaking of Denver, how's the housing market looking at a local level? In general, the same housing trends we're seeing across the nation are just as impactful (perhaps even more so) in the Mile High City.
As an example, one Lakewood home received 74 showings in four days, followed by 15 serious offers from buyers. The listing price was $590,000, but the home quickly sold for $687,000 — 16% above the asking price.
Other hot markets in the Denver area include Aurora's Seven Hills neighborhood, Thornton’s Northhaven neighborhood, and The Meadows in Castle Rock. If you hope to buy a home in the Denver area this year, get preapproved for a mortgage and get ready to act fast.
What Does the 2021 Housing Forecast Mean for You?
These housing trends aren't likely to slow down anytime soon.
If you want to buy a home in 2021, be prepared to move fast and face potential bidding wars with other buyers. If you're thinking about selling a home, you're guaranteed to receive a lot of offers — perhaps above the listing price.
We're here to help with all of your Denver real estate needs, from buying and selling homes to managing your investment properties. Contact us today and let's discuss your real estate goals!