May Market Stats

According to the latest REcolorado statistics, the average home price in May in the Denver metro area rose 4% over April and 9% over May 2015. Low interest rates and a growing population continue to fuel demand and inventory remains low. The tight market is creating stress sellers as well as buyers because a higher-than-average percentage of deals are falling through. “You have this pushback on both sides,” DMAR committee chairman Anthony Rael told the Denver Post. Sellers are finding that buyers are making high offers they can’t really afford and then later backing out of the deal. Demands by sellers for buyers to waive inspections or appraisal contingencies, important safeguards for buyers, are also contributing to the high termination rate. Rael is encouraging both sides to “be more civil and flexible. A seller who’s happy with the initial listing price should avoid squeezing buyers for every penny — especially when the appraisal can’t support the offer,” Rael told the Post. “…Likewise, buyers should avoid getting caught up in the heat of the moment and making offers they can’t follow through on.”