What is the Hottest Price Range?

What is the Hottest Price Range?

The hottest price range in Denver is where the most sales are happening, where homes sell overnight and Sellers get multiple full-price offers. This is good information for both buyers and sellers: buyers need to know how competitive the market will be for them; and sellers can use this information to best position their home price for a quick sale.

Price Buckets

A price bucket is just a way to group products by price.  For example homes between $150-250,000 might be one bucket, $250-300,000 the next, etc.Denver MLS areas

You can make the buckets any increment you want, and it might be true that different areas have different hot buckets.  For example, in Denver, Metrolist divides Denver County into 5 geographic areas, and the surrounding counties are split up also.   Here are the geographic areas for Denver in MLS:

Notice there is a Northwest area (DNW), Northeast (DNE), etc. plus Downtown (DTD).  Although buyers and sellers often use zipcode searches (because some of the internet sites are set up that way), most brokers primarily use MLS Areas to begin a search, and it’s also the way historical data (number of sales, prices, time on market, etc.) is collated in MLS.

What I’m suggesting is that you might want to make a list of  “buckets” for the MLS area in which your home is located.  Why?  Because they’re going to be different for each area. Then when you list your $600,000 home in Northeast Denver, you won’t be as surprises to find it’s not getting the same activity as your neighbor who is priced at $350,000.

Denver Southeast (DSE)

Bucket_dse_2013Notice that the “hottest” price bucket in Southeast Denver is $250-350,000.  With about 450 sales so far this year, it’s 50% stronger than the next best bucket ($350-450k).

 Northeast Denver

Now let’s look north of Colfax Ave. and see that the hot price bucket is in a slightly different market segment.

Bucket_dne_2013In this area, the hot segment is $150-250,000.

Using Price Buckets in Home Pricing

Home Sellers might want to consider the distribution of sales when pricing or re-pricing their listing.  If you have a $675,000 home, for example, your odds of selling go way up if you move it into the next lower price bucket.

The owner of a $575,000 listing in Northeast Denver more than doubles their odds of selling by dropping the price under $550,000.

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