SELLER'S RESOURCE »
The Denver area housing market has seen 7.5% appreciation year to date, and homes are typically selling quickly when priced correctly. In some cases, we’re even seeing multiple and over list offers. Based on this information, now is a great time for homeowners thinking of selling to get their home on the market. However, the timeline for sellers to take advantage of these market conditions might be short lived.
If we look at historic market trends, we know there is a very predictable end of summer and fall slowdown. This usually begins in mid to late July and continues through the end of the year. Last year, it started even earlier towards the beginning of July and resulted in a depreciation of on average 10%. Last year’s double-digit cool off was due to high interest rates that shocked most buyers and kept sellers that would have normally sold deciding to stay put due to their low interest rates.
Interest rates have remained higher than most previous years, staying in that high 5% to 7% range, with most of the year seeing rates somewhere in the 6’s. However, right now interest rates have crept back up and are hovering around 7% or more for most borrowers. If interest rates continue to stay around this 7% figure or even go up, this will likely cause the market to see similar results as last year. If this is the case, we can predict that the end of summer and fall slowdown could be just a short few weeks away.
This would mean if you are a homeowner in the Denver area and thinking about selling, now could be the best opportunity you have left in 2023. Home values are at year-to-date highs and could be headed lower as soon as next month. This does create a unique advantage for homeowners that are looking to sell their current home and buy a replacement.
A great strategy to use with today’s Denver real estate market conditions and the prediction of an upcoming end of year slowdown is to sell now and buy during that slowdown. By listing your home in the next few weeks, you will close on that home towards the end of July or early August. Because the market is still strong right now, it’s very possible to get a rent-back. This would allow you to stay in your home after closing, giving you more time to find a replacement home. This extra time would put you right in the middle of the end of summer and fall slowdown, allowing you to potentially take advantage of the depreciated values and get a lower purchase price.
Denver’s real estate market is still strong, but if we can learn anything from history, it’s that this might be coming to an end quickly. If you’re wanting to sell your home, we still have some time. Connect with a TK Homes agent today, and let’s create a plan for you to take advantage of today’s market before it’s too late.
~ Written by CEO/REALTOR® Trevor Kohlhepp