Could Denver real estate be headed towards a more balanced market? According to the latest stats from the Denver Metro Association of Realtors, buyers now have more homes to choose from, with a significant increase in active listings of 75.2% from this time last year. Between April 2024 and May, inventory was up 31%. While we are still far away from being in a balanced market, more homes to choose from is a welcome sight for buyers. More inventory means they are not feeling a huge rush to make decisions, and are able to take their time seeing more properties. This also means they have more room to negotiate their terms and price.
Heading into July and August, sellers should anticipate their homes taking longer to sell, with possible price reductions and more negotiating being necessary, especially if the property is not in tip-top shape or located in a high demand area. Marketing strategy and accurate pricing will be increasingly important in the coming months as spring fades to summer and we enter the typical slower time in the real estate market. Buyers are taking advantage of the opportunity to be more scrupulous and picky, and that means it’s important to take the time to prepare your home to sale. Take care of repairs, clean thoroughly and declutter to present your home in its very best light to give it the best chance possible to sell quickly and for top dollar.
Going forward, high interest rates will continue to be a concern for potential home buyers and keep many on the sidelines hoping for decreases, however, the expectation based on the FED’s announcements on inflation and jobs reports, is that rates will not have any major decreases this year. Still, many buyers have held off from buying for long enough, coming to terms with current rates and jumping into the market, as indicated by an increase in pending sales, up 8% from last month, and nearly 6% since last year.
One thing to keep in mind is that despite increased inventory and homes taking longer to sell, home values continue to appreciate, as expected, with a 4.2% year over year increase. In the long term, even though rates are high compared to the historic lows they hit in 2020, it’s still a great time to buy a home and invest in real estate, with equity increasing each year.
If you’re wanting to make a move this year, whether buying or selling, call The Phipps Team today for a personalized strategy to achieve your goals.