We are officially in back-to-school mode! In the greater Denver area, we tend to experience a shift from early August through Labor Day, with prices retracting and less inventory added daily. As headlines continue to read negatively, let's discuss why you should remain positive in this market.
Historically speaking, we've seen morehomesgo under contract before Labor Day than after. So, forbuyerswho've felt burnt out over the last two years due to extreme competition, their opportunity has finally arrived. We all know that the economy and housing market are softening, but it is nowhere near crashing; however, here are some key things to note when making the most of this time before kids go back to school and we hit the post-labor day slow down.
2022 vs.?
Comparing 2022 to the last couple of years is NOT an accurate depiction of our market. It's important to reframe the 'pandemic market' to the 'standard actual market.' We currently have 1.3 months of inventory in the Denver Metro Area. The last time we experienced the same inventory supply level was back in 2019, and it was considered an active market for both buyers and sellers. While we can anticipate a significant slow down once we hit Labor Day, the data continues to track with the 2019 market and will bounce back and be on track by next spring.
Now, let's dive into how sellers and buyerscan stand out during this back-to-school time.
Sellers - Pre-Inspection
Some sellers are exploring having their home pre-inspected to prevent any surprises during the offer process! It can be a creative and appealing solution for both parties. Pre-inspections can be extremely attractive to buyers and offer peace of mind for parties when entertaining offers. Talk with yourCorcoran Perry & Co. agentto identify the specifics and if this strategy works for you.
Sellers - Make Sure Your Home is Show Ready
As mentioned previously, data shows median days on the market are at 11 days. Historically, average days on the market over the last 20 years have been around 30 days. When youlist your homeon the market, prepare to have your space cleaned, staged, and 'open-house ready' for 3-4 weeks before receiving an offer.
Price Right or Price Improvement?
What's the right move for you? It's clear that buyers are getting frustrated with 'pandemic pricing.' We're seeing homes make more significant price cuts to get back in front of the buyer pool and offset the affordability issues in our marketplace. This month we saw that 20% of listings sold for over asking, 60% sold for full price, and 20% sold for under asking. Additionally, the rate of multiple offers has continued to slow by 30%. It seems that pricing it right is the best move to be successful in this market; however, it's essential to work closely with youragentto figure out the best strategy for you.
Buyers - Take Your Time
Buyers now have the gift of time when viewing homes. Use this for two things. One, meet with your lender to learn more about navigating the ever-changing landscape of rates. Make sure you have a clear plan of attack when entering the market. Two, ensure the home fits all your needs instead of stressing about rates or having the right competitive offer. Inventory continues to be added daily, offering more options, makingmultiple offers less likely. As we are heading into a slowing economy, set yourself up for financial success and get into homeownership before the recession - date the rate, marry the home.
Don't let the headlines scare you. The market may seem a bit daunting, but make the choice to be a leader and maximize this 'back-to-school wave' before hitting the fall slowdown. Connect with yourCorcoran Perry & Co. agentto develop your personalized success plan to achieve your financial and home goals.
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