The market is officially in transition. It hasbeen a seller'smarket for quite some time, but we are starting to see buyers smarten up, try new strategies, and level the playing field.
Bidding wars have decreased, price reductions have increased, and more inventory is added daily. While rising interest rates may scare someaway from entering the market, the reality is that we're getting closer to a market balance rather than an imbalance.
Here's what we're seeing:
Slow first weekends when homes hit the market, sending some sellers into a panic. Plus, we're seeing buyers smarten up and visit homes after the first week to avoid getting into a bidding war. Panicked sellers + smart buyers = usually under contract by the 2nd weekend
An annual cycle. We're seeing buyer fatigue set in earlier than expected because of the tumultuous market we experienced in January and February. Coupled with summer events, holidays, and rising interest rates, we're seeing this phase happen about a month earlier than normal. Typically this transition happens in late July or early August when we start to see seasonal decay in pricing.
More and more price reductions. Currently, onein every five homes will seek a price adjustment during its time on the market. Rather than see the typical minor cuts chasing down the market, we are seeing more upfront, significant reductions. For some, once the first initial price reduction has been made, they find themselves with multiple offers.
- We are an outdoorcommunity.During the summer months, weather can play a big role in the number of showings or guests at an open house. On the days Denver experiencedcooler temps and high winds this month, instead of hiking or biking, folks were out and about looking at houses.
Hot market tips:
Don't forget about the different types of holidays occurring throughout the summer. Data shows that on federal and religious holidays, we see around a 40% decrease in the number of showings. For Hallmark holidays, Mothers Day, Valentines, etc., we see about a 10% decrease in the number of showings. If anything, a 3-day holiday weekendis ideal for a family to move in, so think about that in regards to the timing your listing.
- Denver Post published an article explaining that current data ranked Denver homes as overvalued by 38.5% above what would be expected based on long-term trends. Are homes in Denver overvalued? The answer is no; they're not. We have standard seasonal patterns that we go through; however, homes are steadily increasing in value long term.
This year is unlike any year in large part because of record numbers we saw in early 2022. Don't let it deter you. Real Estate values continue to appreciateand market patterns show that. All you need is a creative game plan and a dedicated Corcoran Perry & Co. agent to achieve your financial goals in this market successfully.
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