Market Updates »
2021 started like any other recent year for Denver’s real estate market. However, by around mid-February, the market conditions had changed into something no one would have expected. Sellers were seeing offers that were literally hundreds of thousands of dollars over their asking price with all contingencies from inspections to appraisals waived. At that time, real estate experts, TK Homes included, were asking the same question, “How long will this last?” These market conditions continued for several months; however, are they finally behind us? When looking at the current market conditions today in September, I would have to say that they are.
Every year for the past decade or more there is what we call a seasonal slowdown. In previous years we were starting to feel that effect in July; before that, it was always in August. Many buyers and sellers were winding down their summers and getting ready for back to school and the upcoming holidays. It simply was a time of year that many got out of the market to focus on other things. It wasn’t considered unusual; in fact, it was expected. The big question we had this year was would we see the old faithful seasonal slowdown?
I can confidentially say that we are currently seeing it, although it may be a month or two late. The fact is that homes that would have normally had 20-30 showings in a single weekend and received double digit offers are now seeing just a small handful of showings and are considered lucky to receive 1 to 2 offers. In many cases, buyers that were not wanting to compete with crazy high over list offers before now have more of an opportunity to get their offers accepted at or in some cases even below list prices. The market, although normal for this season, almost feels like it’s running in slow motion after the past six months we’ve experienced.
With this current slowdown you are sure to start seeing reports and articles talk about the market changing; they might even talk about values starting to drop. We see this every year, but what they fail to mention is that this trend is more than normal for the time of year and does not necessarily represent the long-term market conditions or projections. In fact, we will not have a clear idea of where the market is headed until about mid-December, a favorite time of year to list a home for TK Homes. It is my prediction, however, that 2022 will be another strong year for appreciation and will be more favorable for sellers. After all, there simply is still not enough inventory for the demand from buyers. My hopes would be that it’s more balanced than 2021, giving buyers a less stressful buying experience while still rewarding homeowners with solid appreciation and a reason to be proud to own a home in Denver and surrounding neighborhoods. Either way, on the first Wednesday of each month we will be here to provide you with a real, bird’s eye view of the Denver area real estate market conditions.
Come back in the upcoming weeks and learn how the seasonal slowdown affects you as either a buyer or a seller. If you’re thinking of selling your home and curious about its value, make sure to request a completely free Market Valuation. Our Market Valuations are done by real, full service, full time REALTORS®, not computers, so we promise our valuation will be the most accurate in the business.
~ Article written by Team Leader & REALTOR®, Trevor Kohlhepp