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Denver’s starting to experience some warmer weather and soon we’ll even start seeing early spring flowers starting to sprout. Is Denver’s weather the only thing heating up, or is Denver’s market starting to show signs of the historic spring market?

The common trend for 2024, as mentioned in all our 2024 Denver Market Update articles, is this is the year interest rates will come down. Early in the year, this trend seemed to be becoming a reality. However, a couple weeks into February, during the Feds regularly scheduled meeting, they announced that they were not going to be cutting rates this first quarter and, due to strong economic data, will be slow to do so. Unfortunately, the market responded with a slightly upward trend in interest rates for the last half of February. So, how has this affected Denver’s real estate market?

We’re starting to see more and more homes coming on the market each week, and showing numbers are also increasing. These two factors would indicate that Denver’s market is indeed starting to show more signs of life. However, another very important stat to make sure we’re talking about is homes with recent price reductions. At the time of writing this, the Denver metro area has seen 941 price reductions in the last 7-day period, compared to the 1,275 new homes on the market and 1,295 that went under contract. The good news is there are still more homes going under contract than coming on the market and seeing price reductions. However, 941 price reductions in a 7-day period is still a high number, especially when according to First American Title, there were a grand total of 4,713 homes for sale on February 27, 2024. This means nearly 20% of active homes for sale in all of the Denver metro area saw a price reduction.

 

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This data is telling us that although we’re starting to see new buyers in the market, they are still being very picky when it comes to making an offer. It’s also telling us that it’s easy to overestimate the market strength and overprice a home when putting it on the market. Sellers are still having to be aggressive with their pricing in order to attract a buyer that is serious enough to make an offer with today’s high interest rates. However, with the increasing showing counts and busier-than-usual recent open houses we’re seeing, it’s not a far stretch to believe buyers are starting to get more serious. This means we might start seeing more activity in the upcoming month or two, right around the same time we’re able to enjoy my favorite flower: tulips.

If you’re a buyer looking to take advantage of a more relaxed homebuying experience, your time to do so in Denver this spring could be coming to an end. If interest rates tick back down, even just a bit, this could be enough to create a buyer frenzy, and Denver’s market could be set up to see strong appreciation in the second quarter of 2024. This also means for sellers wanting a change in their current home it is important to make sure you’re timing the market correctly. We would want to avoid selling your home and then having to get into a bidding war on your replacement home. Luckily, working with the right agent, like the ones at TK Homes, will allow you to maximize the sales price on your current home and get a good price on your replacement home! If you’re thinking about buying or selling in the spring of 2024, now is the time to start talking with us to ensure you’re taking advantage of today’s market conditions.

 



~ Written by CEO/REALTOR® Trevor Kohlhepp

 

 

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