Statistically Denver Metro Real Estate inventory levels are at times 50% of what they were during the BOOM market during the early 2000’s.
From around 1999 to 2002 the inventory levels for the South Denver Metro Real Estate Single-family homes was around 19,000 active homes on the market.
In 2012 we are consistantly hovering between 8,000 and 10,000 single-family homes on the market at any given time. Some neighborhoods simply do not have enough homes on the market to cover demand so prices should have been rising much faster than they have in my opinion.
The reason they haven’t I believe is because some Realtors are still pricing homes as though we are in 2008. Simply put they are gun shy to try for higher sales prices. Some Realtors haven’t been in business long enough to know or remember what it’s like to price homes in a good market.
Typically in 2012 what I’ve been doing is gauging the market in each neighborhood that I’m hired to sell a home.
“If a neighborhood is selling out of it’s inventory every 30-60 days [which many are] then you need to shoot for the stars.”
A quick example. If you have 3 or more solid comparable homes that have all sold quickly for around the same price why not start your asking price 5% to 10% above where the comps sold.
If you have 4 homes in the same neighborhood that all sold at $400,000 within a week I believe that there is a buyer for the same house in the $420,000 range. Obviously there is a chance the appraisal my not come in at value but that is a chance I’m willing to take and I know most home sellers would too.
This also plays in to buying real estate. If you don’t have a Realtor that can show you how to combat other Realtor’s pricing strategies in a hot real estate market you may end up paying more for your next house than you should have.
Steven Beam is a Top selling Realtor in Douglas County Colorado. I believe that using correct pricing strategies ina hot real estate market can payoff BIG for many sellers. If used correctly in this market a good Realtor should be able to get you more for your home than they could have even 8 months ago.
Read these other articles about the South Metro Denver real estate market.