Why is Denver So Hot in The Summer Real Estate Market

Denver’s real estate market has remained sizzling hot, much like the summer days in the Mile High City. Over the past months, we’ve seen a steady uptick in median home prices and a decrease in inventory, signaling a continued demand for homes in the Denver metro area. With more than 10,000 homes on the market and interest rates dipping below 7%, it’s clear that Denver is staying competitive, offering new opportunities for buyers and sellers alike. Let’s dive deeper into why Denver’s market continues to heat up and what it means for both buyers and sellers in the coming months.

 

The Summer Sizzle in Denver Real Estate

As of June 2024, Denver’s housing market is experiencing a noticeable rise in median home prices. In fact, home prices have increased by 2.5% for the second consecutive month. Despite the challenges of higher interest rates, buyers are still flocking to Denver, eager to secure a home in one of the most desirable cities in the U.S.

But why is Denver’s market so hot? Several factors are contributing to the current dynamics:

• Rising Demand with Limited Inventory: While new listings have slowed nationwide, Denver has seen a dip of 23.2% in its active listings. Yet, homes that are listed are still receiving multiple offers and, in some cases, selling above the asking price. This reflects the high demand in the area despite fewer homes on the market.
• Interest Rates Hovering Below 7%: While interest rates have been fluctuating, recent drops have given buyers a bit more breathing room. Lower rates have drawn in many who were previously hesitant, and this influx of buyers has added even more heat to the already competitive market.

The Impact of Price Drops and Negotiation Leverage

Even with fewer homes available, price reductions have been observed in some areas. Buyers, however, shouldn’t feel discouraged by higher-than-expected prices. In fact, there are still plenty of opportunities for negotiation. The market is more balanced than in previous years, allowing buyers to negotiate on price, request inspection concessions, or even secure seller-paid buy-downs for better interest rates.

If you’re a homebuyer, this could be your chance to negotiate more favorable terms. The key is to act quickly and be prepared to move when you find the right property.

 

The Next Hot Real Estate Market: Denver’s Summer 2024 Outlook

With the summer approaching, many potential buyers are wondering what to expect. The Denver market in 2024 is shaping up to be one of the hottest on record. Here’s why:

1. Interest Rates Are on the Decline: As inflation continues to decrease, there’s growing speculation that mortgage interest rates will dip even further. If rates drop into the low 6% range, expect more buyers to enter the market, which could lead to higher competition and faster-moving listings.
2. Strong Market for Both Buyers and Sellers: Despite high interest rates earlier in the year, homes are still selling fast. In fact, many homes in Denver are on the market for as little as six days before going under contract. Sellers who price their homes correctly are still receiving top dollar for their properties.

Buyers: Take Advantage of Opportunities

While the market is competitive, there are strategies that can help buyers secure their dream homes without getting caught in bidding wars. One of the best ways to do this is to shop during slower times, like the Fourth of July weekend, when many potential buyers are distracted with summer plans. Fewer buyers mean less competition, and this could give you an edge in finding your ideal home.

Additionally, if you’re using FHA or VA loans, you may have more room for negotiation, as we’ve seen an increase in the number of closed deals for these buyers in recent months.

 

The Hidden Costs of Renting vs. Buying

In the current market, renters are facing steep increases in rental rates. In fact, Denver’s rental rates have increased by as much as 8.54% in the past year alone. While buying a home may feel more expensive due to interest rates, it is often more affordable in the long run, as rental costs continue to climb.

If you’re on the fence about buying, remember that homeownership is still one of the best ways to build long-term wealth. If you’re tired of rising rental rates, now may be the time to invest in a home that will provide both stability and financial growth.

 

Is Your Home Weather-Ready?

 

One of the main challenges for homeowners in Denver during the summer is the unpredictable weather. From intense storms to unexpected shifts in temperature, summer weather can cause significant damage to homes. As a homeowner, it’s important to be proactive about weatherproofing your property, especially in light of severe storms that can bring hail, high winds, and heavy rain.

 

Here are a few things to consider when preparing your home for the summer weather:

• Inspect Your Sump Pump: A malfunctioning sump pump can lead to flooded basements during heavy rainfall. Make sure it’s working properly to avoid water damage.
• Address Negative Drainage: Ensure that your property has proper drainage, especially around the foundation. Water pooling around your foundation can cause serious structural issues.
• Prune Trees: Trim any overgrown branches that could fall during storms. Keep your trees well-maintained to prevent costly damage.
• Check Your Roof and Windows: Ensure that your roof is in good condition and your windows are properly sealed to keep out water and debris.

If your home has sustained damage due to a summer storm, be sure to contact your insurance company as soon as possible. Most insurance providers have time limits for filing storm-related claims, so prompt action is important.

 

Dempsey Group’s Recent Listings: Don’t Miss Out

Looking for a home in the Denver metro area? Check out Dempsey Group’s latest listing in Arvada! The stunning 6-bedroom, 3-bathroom single-family home at 10785 W 68th Avenue is now on the market. With beautiful updates throughout, this home is ready for immediate move-in. You won’t want to miss the open house on June 24th and 25th, where you can see this gorgeous home for yourself.

 

We’ll be holding an open house on Saturday, June 24, from 10 AM to 12 PM, and on Sunday, June 25, from 11 AM to 2 PM. Swing by and say hi! 👋👋

 

Unforgettable Client Events: Our Community Focus

 

Our Cinco de Mayo Grand Slam event was a huge success, bringing together 80 of our amazing clients. Not only did we have fun learning a new sport, but we also supported a great cause, raising $2,345 for Project I See You, a local charity dedicated to helping women break the cycle of poverty and achieve homeownership. This event was a testament to the strong, supportive community we’ve built, and we can’t wait to see you at our next one!