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It seems like just yesterday families across the Denver metro area were celebrating graduation and looking forward to upcoming summer vacations. Now summer vacations are a fantastic memory, and those same families are beginning their school supply shopping. Just like our summer vacations, Denver’s summer real estate rush is starting to be just a memory.
Denver’s market year to date has seen healthy appreciation, with most areas seeing roughly 7.5% +/-. However, current market trends are showing homes taking longer to sell and often seeing one or even multiple price reductions before going under contract. Appreciation is sure to level off in the near future with most recent home sales or even a slight loss in value from earlier year peaks. This does not, however, mean homes aren’t selling.
In fact, we saw over 1,400 homes change from for sale to under contract in the past 7 days. This is roughly 200 more homes going under contract than new homes hitting the market in the same time period. However, the highest stat during the past 7-day period is price reductions, with nearly 1,450 homes seeing a price reduction in the past 7 days alone. So, what does this mean to you if you’re thinking of selling or buying a home in the Denver metro area?
If you’re selling, it’s encouraging to know there are still plenty of buyers in the market, and homes are going under contract regularly. However, you must be aware that values have leveled out or even come down slightly from previously sold homes in the neighborhood. If you’re looking to sell during this back-to-school time period, you need to be willing to be realistic and even somewhat aggressive with your price. Thinking you’re going to sell higher than the last house in the neighborhood is a bad strategy that could result in your home just sitting until the price is adjusted for the softer market.
For buyers, there might be more opportunity, especially if a home has been on the market for more than one weekend. Sellers might be more willing to negotiate on the sales price or other terms, such as concessions for rate buydowns to obtain a buyer and get to the closing table. However, buyers need to understand that just because many homes are seeing a price reduction, this doesn’t mean every home is going to sell below or even at list. If a home is priced correctly, it’s still very possible to see offers submitted quickly and even in some scenarios see offers over list.
Denver’s real estate market is currently in the beginning stages of a shift. However, it’s not a shift to be overly concerned about, as it’s our normal end of summer and fall slowdown; it’s expected this time every year. With the right strategies, there is still time for both sellers and buyers to make a change in their housing situation.
If you’re ready to sell or buy a home in the Denver area, we invite you to contact us today. Let’s talk about your specific goals, the market in your area of interest and how to get started. If you’re just curious on what’s going on in the Denver market, don’t forget to check back the first Thursday of each month for the latest Denver Market Update.
~ Written by CEO/REALTOR® Trevor Kohlhepp