In Denver, new homes are on the market for about a week before they get snapped up by newbie homeowners or longtime denizens looking to upgrade into something new.
New construction homes in Denver have been selling faster than any other city in the country since April of last year, according to a report from real estate site Redfin.
But if you’re not looking for a new home anytime soon and rather want to make your existing house new again, why wait until 2022? Everyone knows that it’s best to “buy low”… but buying new is also an opportunity for some homeowners to save money without sacrificing on luxury features.
The average days-on-market new construction during last month was just six days, compared with the metro area new construction average of 12 days.
AS NEW HOME INVENTORY REMAINS LOW, THE NEW CONSTRUCTION MARKET IN DENVER IS HEATING UP QUICKLY.
According to new data, buyers can expect new homes to sell within about a week of hitting the market. And while new home sales are projected to increase at a slower rate than they did last year, real estate agents say that current new construction homes are selling rapidly due to their relatively low prices compared with resale homes – not because there’s still room in the pipeline since new home inventory has dropped significantly over the past 12 months.
However, recent reports show that new-home listings have dropped by 1% when comparing 2017 with 2016 which means that new construction homes will sell faster than ever this year.
Currently, new construction homes have an average days-on-market of just six days – the new construction market hit its highest sales pace last July and at that time it had taken about 12 days for new homes to sell.
ALSO, NEW CONSTRUCTION HOMES IN DENVER HAVE BEEN SELLING FASTER THAN ANY OTHER CITY IN THE COUNTRY SINCE APRIL OF LAST YEAR.
The new-construction market is expected to get a significant boost from new mortgage rules that make it easier for millennials and Gen Z’ers to afford new homes – including down payment requirements (so long as they meet certain credit standards or can provide a larger down payment), lower debt ratios and interest rates.
Although new home sales are projected to increase at a slower rate than previous years, real estate agents say that current new construction homes sell rapidly due to their relatively low prices compared with resale homes – not because there’s still room in the pipeline.
ONE THING IS FOR SURE: BUYING NEW IS A CHANCE TO SAVE MONEY WITHOUT SACRIFICING ON LUXURY FEATURES.
Looking at Denver as an example – the average new construction home price reported by NAR recently was $715,400, almost 8% lower than resale home median price ($766,700) for those buying within the same time period.
Also, despite a weaker new-construction market since February of this year due to increased mortgage rates and new buying criteria from Fannie Mae and Freddie Mac – homes have been selling more quickly compared to last year – with some new homes going pending in just over a week.
FINALLY, THE LACK OF INVENTORY IS OFTEN BLAMED FOR DENVER’S HOUSING SUPPLY JUMPING UP BY ABOUT 1% IN 2017.
So, what’s stopping you from buying new?
The long and short: buying a new home is an opportunity for homeowners to save money and still be surrounded by high-end finishes.
Schedule an appointment at (720) 664-7864.