Summer isn’t exactly the best time to go out and buy a new home. Traditionally, home buyers prefer to buy in the spring, while veteran real estate agents note that while demand is low in the winter months, people looking around for a home are more inclined to buy a specific property that they fancy, instead of just touring the latest house to go up for sale. Summer is an in-between period, transitioning between the busy periods of April and May and the less hectic autumn months. As such, home sales tend to be erratic during this time of the year, with few people being convinced to go looking for a new home to own.
Despite the erratic nature of the housing market during the summer season, it might be a good time for buyers to take advantage of it and get an excellent property deal without much of a fuss. This is a key point to remember when looking at markets with a high level of competition between both home sellers and home buyers. Getting a home during the current summer season can also be a deciding factor in closing a deal for a metro Denver home for sale due to a couple of factors.
Things are still looking up for the heavily-competitive real estate market in the metro Denver area. Despite the slight drop in the price of real estate across the United States on a year-on-year basis, homes in Denver continue to gain a higher resale value than most of their contemporaries in other housing markets, coming only third behind Portland and Seattle. The increase was rates at an unprecedented 9.5 percent, higher than the national average of 5 percent.
The current trend has a lot of relevance for home buyers and home sellers who are seeking to close a home deal before the year is through. The strong showing of the local real estate scene can affect how homes sell in the winter and spring periods, increasing competition and making it harder to close a sale. Making a home purchase in the midsummer months while the market is still feeling the aftereffects of the latest real estate price report could help buyers avoid dealing with possible price increases in high-demand months, while sellers can plan further ahead if they prefer not to sell in the summer period after such a big revelation.
Prevalent Supply Problems
It is true that Denver’s real estate developers have gone into construction overdrive around the city for the past few years, but it does not mean that all the new developments are meant for everyone. Condominium and apartment constructions have been going up for a while now, taking the space that would also serve well to be used for entry-level housing. The rapid pace that these constructions are going through means that in the near future, most of metro Denver’s premium real estate spots will be occupied by high-end properties that would be too much for first-time buyers to purchase.
Homebuyers can take advantage of the downtime during the summer season to get their first house while there are still some houses up for sale, especially before the fall or winter seasons when there is a higher chance that an especially high-value home will be bought by its first visitor. Sellers can also take advantage of the slower pace of summer real estate markets to scout for and reserve their own new home if they intend to sell it during the winter or spring season. Of course, going on a panic about the low supply of homes for resale could turn the market on its head and cause a repeat of 2007, so take this advice with a grain of salt.
Going for the Alternative
Denver’s continued prosperity within its real estate scene continues to attract new faces to the city, hoping to cash in on the growth. Unfortunately, some of these new would-be residents are faced with the problem of dealing with increasingly pricier starter homes in cookie-cutter communities, while developers of low-income housing are still reeling from a lack of public subsidy to keep these neighborhoods affordable for ordinary people. Situations like these may force people to stick to a rental home.
Going for a rental home in the first few months of living in Denver isn’t a bad start. New residents, especially young professionals starting out with work in the city, could again take advantage of the summer period to get a good rental deal thanks to reduced demand. Remember that it is only a short-term solution that works if the renter can ensure a stable income while saving up for a new home, and that the renter managed to find a decent home rental deal.
Taking advantage of the summer months to get a new home is not that far-fetched of an idea as some may think. A keen eye for any new deals on the properties market can go a long way in getting an excellent home or selling the current one ahead of the competition. Don’t forget to ask the help of a veteran real estate broker to gain expert advice in buying or selling property in a competitive market at an odd time of the year.