Market Update: An Airball or a Slam Dunk?!
As we enter the springtime selling season for the Denver real estate market, will it be a slam dunk or an airball?!
With so much real estate talk about the market crash, we are far from that. Denver is still in a predominant seller’s market. With inventory still being a problem and home prices increasing, we are seeing that buyers are pickier. Buyers are looking for those move-in-ready homes and are willing to compete for them. If the property needs more attention, we see it sit for extended periods. With detached home inventory levels down nearly 10% from last month, we are entering the selling season with less inventory.
As buyers watch the interest rates very closely, the moment they drop, I suspect we will return to the bidding wars we saw last year. I view the real estate market as a pendulum. It swings in the buyer’s or seller’s favor.
So here is my advice for all buyers, take advantage of this slower market. Yes, interest rates are a bit tough to swallow right now, but when you think bigger picture, not overpaying for a home is the real win. As a buyer, you have more opportunities than we have seen in the past 10 years. You have the opportunity to maybe come in at or under the asking price. The opportunity to have the sellers pay for a rate buy-down. An opportunity to have a full inspection period. Lastly, the opportunity to not overpay or have an appraisal gap language that was mandatory last spring to win. This is especially true for first-time home buyers. This is your chance to swoop up your dream home with MUCH less competition than we’ve seen in a long time.
And sellers, here is my advice: make sure your home shines. Buyers can be pickier now than they have been before. Picky buyers mean you must take the time to do all those projects you’ve been putting off. And if you don’t feel like doing those projects, you need to be realistic about pricing accordingly. Little adjustments like a fresh coat of paint, new carpet, or some light updates will make a HUGE difference when getting those multiple offers. And now is the time to be realistic about the market. You likely won’t get 15+ offers the first few days on the market, and that’s ok! Be patient, price it right (leave that to me) and know that it might take a little longer than it did before. And that is ok! Thankfully Colorado has a strong workforce and has weathered market shifts with ease. You are still likely sitting on a gold mine of home equity!
Navigating ever-changing marketing is all about setting realistic expectations and having those conversations!