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With the first few weeks of 2024 officially behind us, we’ve already seen an uptick in activity in Denver’s real estate market. In fact, a common question we’re seeing from many homeowners right now is, “Should I list my home now or wait?” I am guessing if you’re reading this article, you might be asking the same question. Unfortunately, the answer is not simple. Before we can think about answering this question, we must first consider a fact seldom talked about regarding Denver’s real estate market.
There’s a lot of noise in the media right now about 2024 being the year that interest rates drop, and buyers rush back into the market. This narrative usually ends with home values shooting up as inventory dries up and demand increases. However, one piece that many forget to talk about is that it hasn’t just been homebuyers that have been sitting on the real estate sidelines this past year to year and a half.
At TK Homes we have talked with many homeowners this past year and a half that would love to sell their home and purchase a home that better fits their current needs. However, higher interest rates and an overall slower market have caused some sellers to stay put. If the interest rates were to come down in 2024, many of these homeowners would likely decide to act on their desire to sell and make a change. This could increase inventory levels and potentially level out the flood of new buyers coming into the market. This scenario would certainly change the narrative for Denver’s home appreciation for 2024.
Another scenario that many are not talking about is what would happen if 2024 was not the year that interest rates dropped, or if they didn’t drop as quickly as many are hoping for. As of right now, we just had a TK Homes homebuyer get quoted at roughly 7.5% on his purchase. This rate is definitely not the highest we’ve seen, but it’s a far cry from the mid 5’s and below what I believe many homebuyers would prefer to see. In my opinion, with the most recent stats on the overall inflation and economic data, the Feds will be slow to make rate reductions. This scenario would certainly keep buyers waiting for a lower interest rate sitting on the sidelines. This scenario would also likely prevent current homeowners who want to sell their homes from actually doing so.
With these two scenarios being real possibilities, you can see that it is hard to answer our original question: should you sell your Denver home now or wait? However, if I am being forced to answer the question, I would say right now it would be my recommendation to at least wait another 1-2 months if the timeline allows. Typically, the Denver real estate market sees a noticeable uptick in activity come February and March; this uptick usually increases home values by a sizable amount. However, it’s important to also state that depending on what your next home purchase looks like vs. the home you’re selling, it might make sense to sell now (or within the next couple weeks) and purchase before the rush. This way you can enjoy the appreciation vs. pay for it.
Since the answer to this question is not a clear-cut answer for everyone, we encourage you to contact TK Homes today and chat about your specific scenario. At TK Homes, we promise to listen to your specific needs and provide advice to give you the best possible outcome, including helping decide if selling now or later makes the most sense.
~ Written by CEO/REALTOR® Trevor Kohlhepp