Savvy Sellers Capitalize On Record High Home Prices, Record Low Inventory In Denver

DENVER (CBS4) - October was another impressive month in the housing market, with a record high average of home sales price and a record low figure of inventory, according to a report released Thursday by the Denver Metro Association of Realtors. Agents say the trend is a surprise when there is usually a slowdown after the summer and into the holiday season.

"I'm not seeing any kind of a slowdown at all. I've got buyers this weekend. I've got people flying in from three different states next weekend," said Lori Abbey, a realtor and owner of The Abbey Collection. "We are going as if it's still the spring market."

Abbey says a strong economy in Colorado, and the desire to live here because of the weather, continues to bring outside interest from across the country. She says that only adds to the build up in interest during the summer months when the shutdown from the pandemic affected the market in March and April.

Detached homes averaged a sale price of $625,100 -- and an attached home averaged $393,733. The residential average that includes both reached $561,999 for October, up 4.55% versus September and 16.2% from a year ago. The figure that represents inventory based on months of supply fell to .81, indicating a sellers market.

"It is great, it's a great market to be selling it in," said Taylor Cook, a homeowner in the process of selling it. "You think you can just put your house on the market and it's going to get picked up right away."

Her family purchased a home three years ago and they're expecting a high value return on their investment. They are working with The Abbey Collection to sell their house. Cook admits they were under the impression that the competitive market would be so much in their favor they could sell the home on their own, but they eventually chose to work with an agent.

"We didn't realize how many factors would go into it," she said on a video conference call. "We were feeling overwhelmed and now we're feeling really good at where we're at."

Abbey says she has never seen this level of interest in the weeks leading up to Thanksgiving. She also believes that so far, even without a decision in the presidential election, the final result will not affect the market significantly.

"The world is still the same, we're all going on just as we did a couple days before," she told CBS4.

Buyers still require every competitive advantage they can bring to the table including pre-approval to go up against cash offers. It is also important to accept a home "as-is" given the high interest coming toward each listing. A potential buyer has to move quickly because a house they want to pursue could be gone in less than 24 hours after they see it on the market.

"Anything you can do to shorten the closing time so that you give sellers comfort," Abbey added. "Sellers want to make sure that your offer is the one that closes."

While the weight of the market remains on buyers, there is still work for sellers to make sure they get the best return on their home. Pricing fairly will make a difference because anyone shopping as well as their agents can quickly check to see how it compares online. Abbey also says if a seller misses out on a sale during their first three weeks of listing a home, they could lose 3-5% on their final price. She says they need to freshen up the house and keep it move-in ready because that is more appealing during COVID-19.

"The market is hot but buyers have the internet, buyers have very savvy agents," she said.

The current trend will likely continue because of the metro area's rapid growth and the increasing desire for families to move to Colorado, including among millennials.

"It doesn't feel like we're in a bubble to me because this simple economic supply and demand, people moving here," Abbey explained.

For the Cook family, it was a quick learning curve to touch up their home with paint and determine what offer would be best given their timeline. They navigated multiple offers with a young child and moving during the holidays -- they are making it work with the help of family. The Cooks are excited to put the money they make on their old house into the new home.

"This is going to be a great move for our family," Cook said.