While we aren't seeing 20+ offers on properties, which we've grown accustomed to, we're still seeing many homes go under contract with multiple backup offers.
The Denver/Lakewood/Aurora area remains one of the hottest markets in the country, coming in at number 10 in the top 20 most active metro areas for prospective buyers. Active inventory in Denver grows roughly 4% week over week; however, with upcoming holidays, graduation season, and summer vacation, it's smart to anticipate buyer fatigue.
Market Tips- Master Your Home Price Range
Under 500K
For Buyers:
A great time to visit a property is towards the end of the week on a Holiday weekend try Friday or Saturday! Everyone will be busy preparing for festivities at home, so you'll have the place to yourself with no competition.
On the weekend of April 23, more homes went under contract than any other weekend in 2022. Set yourself up for success and work alongside a Corcoran Perry & Co. agent who can strategize your search and remain competitive!
For Sellers:
First impressions are crucial in this financial range. If you're not getting any feedback or action the first weekend, it may be time to rethink your strategy and price.
It's essential to think about how world issues may impact the real estate market but, more importantly, how it will impact buyers. While it won't present a financial strain for some buyers, for this price point, it could mean the difference between purchasing their forever home or stepping away from the process altogether.
Fatigue is expected to hit this group around mid-May; however, it may come sooner depending on the economy and rising interest and inflation rates.
500K-1Mil*
For Buyers:
Strategize before you buy! Before you go out and look at homes of interest, come up with an appealing financial strategy to set yourself apart from the other competition. Try to rewrite your offer to include a bonus or special incentive rather than one dollar amount!
For Sellers:
Make sure to list before Memorial day! Previous data show that there has been an uptick in the market coming into holiday weekends. While the number of showings may be down, this range is a fast and competitive market, putting the selling odds around 77%.
*Price range currently describes the bulk of the homes in the Denver Metro Market
1Mil+ (Market is heating up in this Price Range!)
Buyers:
Inventory is growing, and now is a great time to dive into your home search as the market begins to soften. The number of individual offers is down, but with the median days on the market at 4, this price bracket is still competitive.
Sellers:
We're hitting the busy season for this price range, so it's time to list larger homes NOW before summer vacation starts! Currently, we're seeing 83% of homes end up in a multiple offer situation, so don't wait!
We're starting to see some price reductions; however, properties making a price improvement in the last week of the month were statistically forced to make a larger reduction than if the price change was made outside the last week of the month.
Inventory in this bracket will continue to rise until September, and we will feel the summer fatigue from buyers as they vacation and enjoy their summers.
Market Wrap Up
The market may seem intimidating for some, but now is actually the perfect time to invest in real estate. Even though data suggests that there may be a recession, that doesn't necessarily mean there will be a housing bubble too.
Why is that?
Overall, national equity has increased. Household debt and mortgage debt to income ratio are at a four-decade low. House equity is at a historic high, with the total US loan delinquency dropping 14% month over month. Yes, interest rates will increase, and demand may fatigue, but it won't drastically drop (creating a bubble) due to the ratio of inventory to demand.
Home values in Denver alone have increased 33% since the pandemic began. So, as Will Rogers once said, "Don't wait to buy real estate. Buy real estate and wait.
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