Cole/Whittier February Market Update

February 27, 2017
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# of Closed Sales: 8

Average Days on Market for Solds: 19

Median Sales Price: $490000

# of news listings: 10

Months of Inventory Last Month: 1

The Cole & Whittier markets are starting to gear up for spring just like the rest of the front range. We tend to see the least amount of new listings hitting the market in Nov, Dec & Jan and this year was no different with only 11 new listings in Nov, 5 new listings in Dec & 10 new listings in Jan. These are the lowest 3 months for new listings in the last 12 months. Based on the data, there is a direct correlation between properties that sold for at or over list price and DOM. Of the 8 properties that sold in Jan only 4 properties sold for 100% or higher sold-to-list ratio and the DOM for those 4 properties was at 7 days or less. The other 4 properties that were on the market for over 7 days sold anywhere from 84%-99% sold-to-list ratio. Buyers are still very sensitive to pricing and they will not over-pay for a home that is overpriced. Sellers who want to get multiple offers in order to hopefully create competition for their house should still consider listing at or even slightly under market value and letting the buyers set the price. If you are worried about the home appraising then make sure to find a buyer who is willing to make up a gap between appraised value & contract price. Trust me they’re out there!

Looking at the properties currently under contract in Cole & Whittier I see a large majority of those homes (13 of the 16) went under contract in 10 days or less! I think we are safe to assume that many of these properties had multiple offers and most likely went under contract for over list price. With interest rates still low and rents increasing I anticipate the spring market for 2017 will be similar to the last few years and I suspect we’ll still see multiple offers and high competition for nice properties that are priced well. 

The sold-to-list ratio for 2016 was 100.3% which definitely still shows a market favoring sellers. The Avg DOM for 2016 was 25 days while the Median DOM was only 7 days. We did see those days tick up slightly from 2015 which were 19 for Avg DOM and 6 for Median DOM. For buyers who may have lost out or are slightly more gun shy when it comes to competition I would suggest looking at older listings (which in this market is anything on the market for over 2 weeks) because chances are there won’t be as much competition and you may even be able to negotiate with the seller and get the property for under list price.

Based on the limited inventory we continue to see in Cole & Whittier coupled with the low interest rates, I think the spring market will still be frenzied and buyers should expect to pay premium prices and be up against stiff competition with multiple offers. If this information, as a buyer, gives you anxiety then I would suggest changing your mindset and getting in the game. The Denver metro market does not show any signs of slowing down and with the high numbers of new residents moving to our city every month you can expect the competition to stay strong. The only aspect that could alleviate some of the competition is if interest rates rise however with rental rates at an all time high it is still more cost effective for many buyers to pay a premium to purchase because their monthly payment for a home will still be less expensive than their rent.

After reading this information and you want a real estate broker working for you who can provide clarity, control & confidence with either buying or selling in this market then please do not hesitate to reach out to me with any of your Cole & Whittier real estate needs!