The following market update is a mix of my thoughts combined with key takeaways from the Denver Metro Real Estate Market Trends Report (DMAR). So, while a lot of the numbers are specifically based around Denver Metro, it’s similar to what other metro areas in the US are seeing.
My main takeaway is despite all this talk of a real estate recession the spring market is outperforming expectations. Experts predicted a slow spring, but low supply paired with continued buyer demand has resulted in a strong start to the season.
What You Should Know
- Sellers are still seeing multiple offers that are competitive
- Buyers are more prepared than ever; they are coming to deals with the right mix of concessions and price. It’s crucial to have a solid real estate agent on your side to help you navigate these crazy times.
- Sellers, despite getting multiple offers, have to price thoughtfully.
- Bidding wars are still happening on appropriately priced, new to the market, turnkey properties.
- Lots of opportunities for buyers still exist if you can get creative. We’ll help you out with that!
A Look at The Classic Market
A lot of our clients, especially first-time buyers, are looking in the $400,000-$600,000 range (AKA the classic market). This continues to be a tough market to get into in Denver.
- Limited inventory: 20% decline in listings year over year.
- Seller’s market: 99% of the time sellers are getting what they ask for.
- Unlikely to change: The continued low inventory and high demand is expected to stay.
If this is your price range and you’re looking to get into the market this year my advice is to stay in tight communication with your agent this spring. There are deals to be had, but you’ll want to be actively engaged in your buying process…. they won’t fall onto your lap!
In Comparison to the Classic Market
While it’s still a seller’s market across the board, there are variations in what we’re seeing in different price ranges. The luxury market (+$1M) is acting a lot like the classic market, with sellers getting the dollar amount they ask for. This is largely because buyers in this price range are the least affected by the higher interest rates. The luxury market leads the Denver Metro area with the most pending and closed transactions year to date! Yikes!!
And speaking of being unbothered by high interest rates, the Signature Market ($750K to $1M) is seeing an INCREASE of listings. These homes are not seeing the same level of appreciation as homes in the Classic Market, but they are still getting their asking price which has been the highest prices we’ve seen year to date.
So those are some tidbits from the market. I can’t advise you enough, that if you’re in the market for real estate to talk with buyers, sellers and agents directly to get facts. What’s being discussed at family dinners or even on the news isn’t as accurate as what’s actually happening in the market.