There’s no getting around it, buying a home in Denver is a challenge. With continued low inventory, properties going under contract lightning fast and record-setting prices, it’s easy to get frustrated.

DMAR predicts in 2022 we will see a massive inventory shortage. So what does this mean for buyers? It means thinking about buying sooner rather than later might be your best bet at avoiding an incredibly competitive market in 2022.

Last month set a new record for the lowest inventory on record with only 2,248 homes for sale in the Denver metro area.

The average sale price of a single-family home in metro Denver came in at $703,847, an increase of $92,068 from the same time a year ago. This is only the second time in the city’s history that the number has surpassed $700,000 — the other being in June of this year when it was $725,278.

However, there are some tips to overcoming the obstacles in this very competitive market.

Jenny Usaj, managing broker at Usaj Realty, says a motivated buyer can still find a home as long as they are committed to the process and willing to be flexible.

“Without question, it can be a struggle,” she said. “But it’s not impossible. People must certainly have some resolve and be ready to act quickly. Anyone who hesitates is going to be left behind.”

While home sellers still have the upper hand, there are some tactics for buyers to employ when searching for homes that can benefit them in the long run. Here are some of the methods Usaj recommends when tracking down potential properties that fit the buyers’ wants and needs.

New Listings on MLS

Get on an MLS search through your Usaj Realty realtor and have it alert you as soon as new inventory hits the market. That way, you get a first glance at all inventory that fit your criteria so you can book a showing quickly. New inventory typically hits the market on Thursdays, so be sure to check your email every Thursday throughout the day to catch new listings when they go live.

If it is early on in your search and your criteria is not 100% set in stone, it can be wise at this point to cast a wider net in terms of criteria like location and other specific details so you don’t miss a home that falls just outside of your price point, area, attached vs. detached homes, etc.

Focus on Homes That Have Been on the Market 10 Days or More

On the other end of the spectrum, instead of focusing on homes that are coming soon or just listed, spend your time searching for homes that have been on the market longer. Most home sellers are eager to move their properties quickly, and after 10 days, they may be getting anxious to get under contract.

Homebuyers may have more negotiating power (even with price) with these homes as a result. There may be innocuous reasons why the home is still on the market so don’t be shy about pursuing a listing that may have been ignored.

Check Back on Listings – You May Have Missed Something

Although the number of listings in the Denver metro area are at an all time low, it’s still easy to miss a property that may fit your criteria. Take the time to review homes for sale in the areas that interest you and make sure your realtor combs the neighborhoods as well. Keep in mind, homes do come back on the market for a variety of reasons including financing that fell through, cold feet and personal emergencies that impacted the sale. Just because a home has been re-listed doesn’t mean there is something wrong with it!

Pay Attention to “Coming Soon” and “Withdrawn” Listings

Your Usaj realtor can also do a search in MLS for any home with a status of “withdrawn” or “coming soon” and converse with you on whether any of those are a good fit. Withdrawn listings are sometimes taken off the market if the seller gets cold feet or it didn’t sell in the time period they were expecting. Coming Soon listings are homes that will be listed on the market within 7 days so it gives you a head start on perusing the listing online and then hopefully being one of the first to tour the home once it is formally listed.

Consider a Condo or Townhome

While many homebuyers’ first choice is a single family home, a townhome or condo may fit their needs. Especially for first-time home buyers and people looking to downsize, a multifamily home may provide the amenities and low-maintenance living that allow you to focus on lifestyle and not property upkeep. There’s a great amount of inventory in the condo and townhome market. Maybe you consider branching out and look at smaller townhome developments that have a yard or a condo with a terrace. If paying an HOA fee is your #1 concern with buying an attached home, communicate that with your Usaj Realtor and they can help find you a townhome with little to no HOA fees.

These housing options also are less expensive and as a result, require a lower down payment. Furthermore, there are amazing condos and townhomes in the heart of downtown Denver where you can easily access great restaurants, sporting events, cultural activities and special events.

Expand the Parameters

You also may want to tweak some of the parameters you’ve set for yourself that may expand the offerings. In this fast-moving market, homebuyers often have to get creative in how they approach the buying process. You may have a dream neighborhood but it’s important to be flexible. There may be adjacent communities that offer similar schools, amenities and architecture that you’re looking for.

As odd as it seems, look for homes that are over your budget. Sometimes higher-priced homes have been on the market for a while and as earlier stated, you may have some leverage on the price as a result.

Don’t Forget about New Construction

New construction homes are not always entered into the MLS and your Usaj Realty broker will be able to tell you about brand new communities. Typically, home buyers avoid multiple offer situations when buying new construction since the project has multiple homes for sale and they are not likely to sell out all at once. This can be a great option for someone who wants more time to think about the buying decision and isn’t ready to buy a home after touring it one time.

Conclusion

Yes, inventory is at an all-time low but during December and January, many people pause their search for a home. Buyers who are committed to continuing their search may well find their dream home through sheer willpower. And keep in mind, it’s likely interest rates on mortgages will increase in 2022 so staying the course on finding a home is a good move.