Q: I’m hearing conflicting news about the Denver metro real estate market. How is the market? What is your advice to clients?
A: Great question! First off, let’s talk about the current market… Denver metro housing is normalizing after two unprecedented “unicorn years” 🦄 fueled by low-interest rates and a “scarcity mindset” among buyers. We are seeing a return toward seasonality as the market cools and buyers find themselves with more negotiating power. Still, buyers have limited options due to high rates (mid- 7.0%’s) and little fresh inventory. New construction is picking up, however, high price points exclude many first-time homebuyers.
What we are advising clients…
First-Time Homebuyers: Buy as soon as possible before rates drop and then refinance when possible. We expect the number of buyers to significantly outpace the number of sellers when rates eventually drop (most likely during the second half of 2024), leading to fierce short-term buyer competition, similar to early 2022.
Trade-up Buyers - Sell Existing and Buy Bigger: Buy now (reference above) and ensure your home sells quickly and for top dollar by making high return-on-investment 💵 updates and/or repairs. Why? Because the marketability gap between homes that show well and ones that don’t has never been greater. Homes that show well are selling MUCH faster and for a disproportionate, HIGHER amount than homes that show poorly.
Sellers - Sell Only, No Buy: Wait. When interest rates drop and/or the spring selling season comes along, demand will increase faster than supply, and your market power (and sales price!) will increase substantially.
Seller - Below Average Home: Wait. Your sub-par home won’t sell easily in this market with fussy buyers. When rates drop and/or the spring selling season comes along, competition will make it easier to sell and for more money.
Investor Buyer: Buy now with the negotiating power you currently have and refinance later in order to achieve better cash flow.
Contact us anytime you have a real estate-related decision – contractor referrals, high return-on-investment questions, concerns about the market, etc.
We’re more than just Realtors, we’re real estate advisors.