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It’s official; the first month of 2024 is in the books, and the hype of the New Year has worn off. Many have already forgotten about their New Year’s Resolutions and are back into their daily routines (hopefully you have read our blog providing tips on how not to be one of those people). The question is: Is Denver’s real estate market following this same trend of going back to how it was in 2023?
The big hype around 2024 and the real estate market is that 2024 is supposed to be the year that interest rates come back down. Media outlets and social media sites alike are sharing fun videos of huge flocks of buyers jumping back into the market and home values raising to all-time highs. So, has this happened or is this happening?
January, in a way, did feel a bit busier than previous years; however, it was not exactly like the videos seen on social media. In the first few weeks of 2024, I had several homeowners contact TK Homes and request a Comparative Market Analysis. The general theme of most of these inquiries involved homeowners playing around with the idea of finally taking the leap, selling their home, and purchasing their next property. This desire was fueled by the idea that interest rates could be more favorable, making it an easier transition from their 2020/2021 interest rates to today’s rate. Many homeowners seemed a little surprised or disappointed by the lack of value gained in the past year and even more disappointed at the current interest rate for a new purchase (which at the time of writing this article is in the mid/high 6s to mid 7s). Time will tell how many of these inquires turn into homeowners taking action this year. However, what is interesting is who we haven’t been contacted by so far in 2024: homebuyers.
Even with the media acutely focused on lower interest rates and rising home values in 2024, buyers don’t seem to be taking the bait. Don’t get me wrong, we’ve had several conversations with clients thinking of buying, but almost all have a home to sell first. The buyers the media is talking about that are sitting on the sidelines and who are supposed to come out with these lower interest rates seem to be still sitting on the sidelines.
If this is the actual trend for 2024, inventory levels might remain relatively unchanged from current conditions. If everyone coming into the market is also selling, then inventory levels will remain flat because for every new buyer there is a new property on the market. This is a far different story than the media has been sharing. However, it is important to remember, we are only writing February’s market update, and there is a lot of time left in the year for things to change, including interest rates. From recent Fed meetings, we could see our first interest rate cut as early as March. If this happens, it could be enough to trigger that feeding frenzy all those videos on Instagram keep talking about. This is why it’s important to check back with TK Homes the first Thursday of each month to see the most current Denver Market Update blog.
To wrap this market update up, Denver’s real estate market is moving right along in 2024. Homes are selling fairly quickly when priced correctly; in some cases when priced more on the aggressive side, we are even seeing multiple offers and offers slightly over list. Sellers that are trying to push the value of their home are often seeing their home sit with showings being scheduled but no offers. With the market showing signs of movement similar to our fall slowdown, there’s reason to believe we’ll see a pickup in inventory and potentially more buyers in just a month or two. This creates a unique window for buyers right now to get in before the spring rush and appreciation.
As always, if you are thinking about selling or buying a home in 2024, contact us today. Let’s start a conversation about your specific goals and timeline to ensure we take advantage of current market trends to maximize your sale or purchase. It is never too early to start creating a strategy for your move in 2024!
~ Written by CEO/REALTOR® Trevor Kohlhepp