The Denver Real Estate Broker Blog

Central Park Real Estate Trends

Central Park Real Estate Trends

Real Estate sales in the Central Park neighborhood hit an all-time high in 2013. With record low inventory, record low interest rates and lots of buyer demand,  many homes sold with multiple offers, bidding wars and a sales price well above the asking price.  Many experts referred to the first half of 2013 as a “frenzied” buyer market which sharply pushed up prices.  During the second half, the frenzy cooled because of rising interest rates but inventory remained low and home sales still continued at record numbers.  Overall there were a total of 442 home sales, which was by far the most sales Central Park has seen since its last record year in 2012 with 359 sales.  Median home prices have also continued to increase because of low inventory and high demand, with median prices landing around $401,870.

Right now is the time to buy real estate in the Central Park neighborhood because interest rates are expected to rise in 2014. In addition, we expect inventory levels to remain low which will support rising prices.  This means you can afford much more home now than say in a few months. A good example would be to look at the mortgage payment of a $500,000 home.  Assume current interest rates of 4.5% and a 20% down payment for a total of a $400,000 loan. If you calculate that mortgage payment you are at a monthly mortgage of $2,026. Assume interest rates rise to 5.5%. To afford the same monthly payment, you can now only afford a $446,250 home. This is a 10.75% loss of purchasing power and it doesn’t even assume any price appreciation. This could mean the difference between purchasing a home with a finished basement and an unfinished basement!

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Why Hire a Denver Realtor Part 2 - Ready to List

Why hire a realtor?Listing your home for sale can be very overwhelming.  Where do you start?  What price should you sell for?  Is everything ready?  Are there any fixes to be made to the home beforehand?  The information below is why you should hire a realtor to help with your real estate transaction.

The first step is finding a professional real estate agent that you trust. The process of selling a home is a large one with many obstacles and legal pitfalls. Choose an agent with a good track record and with plenty of experience in your neighborhood.

The next step involves selecting your list price. This is another very good reason to hire a realtor. The market dictates the price of Denver real estate, and all real estate for that matter. A home is only worth what a ready, willing and able buyer will actually pay for the property. So, in order to determine what s piece of real estate is worth you must examine what other, similar properties have sold for. The general rule, select sold properties within 1 mile of the subject property and that have sold in the last 6 months.

Once the market price has been determined you have a decision to make. Are you going to list your home at the market price or go for more? This is a critical decision. If you decide to shoot for more than market price, as many do, be mindful of your decision. We live in an information age and buyers have access to listing data. It is easy to determine when a home over priced. This may cause a decrease in the number of showings as buyers may eliminate the home as overpriced. The second detriment to over pricing your home, the longer it sits on the market the more stigmatized the property becomes. Buyers see...