It may come as a surprise, but now is the best time to purchase a home in the Denver Metro Area. Denver's real estate market has a seasonality to it, but with the recent hike in rates, we are seeing the market correct itself more substantially than is typical during this time of year.
This correction presents itself through the slow-down of home sales and rising inventory. As these changes occur, we see the gift of time extended to buyers. Time to see multiple listings, time to negotiate, and time to work with lenders for a creative financial solution. Meanwhile, a seller can analyze the marketplace to strategize the sale of their home correctly.
Denver Home Appreciation Is Ahead Of The Curve
The average closed price in the Denver Metro Area experienced its first slight drop month over month this year by 1.3%. However, compared to last year, the average closed price is still up 8.2%. Given the pandemic-fueled buying frenzy, we saw home sale prices drastically increase over the previous two years, pushing appreciation metrics way ahead of what we would historically expect. The trajectory of the Denver housing market over the last two years created a false sense of the market, so it is imperative to note that while home prices continue to correct themselves, the long-term appreciation will be well above what anyone historically anticipated.
What It Takes To Get It Sold
The last couple of months have proven that it requires a lot more work than what has become accustomed for homes to go under contract. Houses are no longer selling themselves. It is time to invest in professional photography, staging, host open houses, and prepare a price reduction strategy with your agent. That said, your initial pricing strategy will set the tone of your home sale. Homes priced conservatively are more likely to receive multiple bidding offers, despite rising interest rates and inflation.
Suppose it doesn't feel like the right time to sell your home and you want to wait for the new year; make sure to capitalize on the time you have between now and when you list your home. It is a great time to complete little updates and projects that can help sell the house quickly, such as cleaning and decluttering, washing windows, painting, updating light fixtures, replacing window screens, refreshing the outdoor space, and hiring professionals to visit your home to check all major systems. Your Corcoran Perry & Co. agent can sit down with you to strategize and identify the critical home projects you should complete before going on the market.
The market can seem overwhelming at times. Hearing horror stories and reading negative headlines can make you second-guess about jumping into the game. Information and understanding how to use it to your advantage will set you up for victory in this market. Right now, patience and a clear strategy are the winning combination. Remember, real estate is a long game, it's not about day-trading homes. The average American homeowner spends around 13 years in their home according to RedFin. Connect with an agent for a free market analysis of comparable properties in your area and personalized long-term strategy.
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