(not so) BREAKING NEWS: Denver is in an extreme seller’s market.
Well, we’ve known this for the past handful of years. While our inventory is seeing intense lows, like, since 1982 lows, there are a few things that I want to revisit.
Historically speaking, January always has the lowest levels of inventory. It’s cold outside, the grass is dead, and no one really wants to list this house in the middle of winter. We always see a pretty dramatic decrease in listings during this time of year.
With interest rates still low, we are seeing more buyer activity as well. When you mix the lack of inventory with an uptick in buyers, you get the perfect storm, which is what we are seeing. Listings are going active on Thursday’s. Showings through the weekend. And decisions made by Tuesday. These listings are going $50,000+ over asking, unlimited apprisal gaps, and sometimes no inspection clauses. Now, I want to ask you, is this in your best interest?
While we see and hear about the Denver market’s feeding frenzy, we also know that in (give or take) 6 weeks the spring market starts to kick off. The bottleneck of activity will hopefully be met with more homes coming to the market.
Spring in Denver has always been the busy season. While we are all feeling the repeated disappointment of failed offers, there could be some light at the end of the tunnel. Come on, springtime!!!
My best advice is to look for homes sitting on the market for longer than ten days. Maybe open up your search radius, also those fixer-uppers are where it’s at! The new, shiny and pretty listings are going well over asking, often not appraising at value. We don’t want to make bad decisions, and it’s all about education.
So, hang in there, and if you have the time to wait a few more weeks, I would. The second quarter is always our best sales season. Why? Because there are more homes to sell!!! So, if you don’t HAVE to buy right now, wait it out and see what springtime has in store. If you do HAVE to buy, look at the “sleepers”, the less pretty homes, as that’s your opportunity to strike.
My saying, there will always be more homes! Hanging in there, we’ve got this!!!