This month's market update may be Deja Vu for frequent readers of our monthly update. The recurring market theme is high rates, lack of affordability, and huge inventory increases. A large inventory build has caused parts of the overall market to seize up. Showings are down in some neighborhoods and price ranges. The next step will be for prices to start to recede.

Sellers must be prepared to have their properties in the best possible condition, plan for extended marketing time, and be prepared to have the rate buy-down conversation to get the right buyer qualified and into their property.

Relief may come by December with a gift of lower rates, but this will have an inverse impact on property prices. A rate cut will not address affordability. Prices will have to decrease to make up for higher tax, insurance, and carrying costs. Buyers continue to seek relief from high acquisition costs. Believe it or not, this is a great time to purchase, as active inventory hits highs not seen in the last 5 years.

We are getting back to a more normalized post-COVID market, and the next phase will be price discovery. Seller motivation will lead to softer pricing and more buyer concessions offered. This may take some time, but the increased inventory and sellers flush with equity tell the story of what's next.

Whether you are planning to invest, buy, or sell, working with an experienced advisor within our firm will help you take advantage of the best opportunity this changing market has to offer.

The numbers can't be ignored. Inventory has increased 19% month over month, and 50% more homes are on the market than this time last year. For months, we have been predicting the return to a more normalized market. We are on our way. Although it has taken a hurried hike in interest rates, the amount of available properties is returning to a healthier level.

Historical average inventory for April is around 14,000 homes, as opposed to the low set in 2021 of around 2,600. Currently, our market sits at around 7,000 available listings. Competition among sellers is heating up. With many more homes on the market, accurate pricing is more important than ever. Although some properties are experiencing multiple offer scenarios, these homes are in top marketable condition and priced to precision.

Each month, as the market normalizes, buyers have more to choose from and can wait for the right opportunity. Down payment amount and type of financing are coming into play more often. Sellers want to vet the financial health of the buyer to make sure that the transaction will get to the closing table. Rates have backed off considerably this week, and as of today are sitting at 7.16% for a 30-year fixed loan. Has the Fed done enough to crush inflation? My vote is no.

Whether you are planning to invest, buy, or sell, working with an experienced advisor will help you focus on how to best take advantage of this changing market.

The Denver real estate market is in full bloom. Inventory is growing, but sellers still have the upper hand in most neighborhoods. Statistics indicate that sellers are more willing to make a move, and the effect of the “Golden Handcuffs” of low rates is wearing off. Life marches on, and sellers are willing to tap their equity to accommodate their lifestyle needs.

To the benefit of buyers, inventory is 30% higher year over year, and increasing monthly. Even with fewer homes hitting the market, there are more listings to choose from. We are continuing the trend towards a more normalized market, but still have work to do. Each nominal drop in rates creates a surge in mortgage applications. The lower days on market (40) month over month are due to a dip in rates in February. More inventory and lower transaction times point to a market that is heating up. Freddie Mac is quoting 6.82% on a 30-year fixed mortgage.

News of a National Association of Realtors (NAR) settlement is dominating headlines. There is plenty of misinformation in the media. Buyers want to know if they are going to have to pay out of pocket for representation, and sellers want to know if they get a pass on paying buyer agent commissions. We have answers on how this could impact you.

Whether you are planning to invest, buy, or sell, working with an experienced advisor will help you tune out the noise and focus on how to best take advantage of this market.

Spring is heating up and the housing market is too! Statistically, homes fetch the highest price in early Spring. Inventory has exploded with a 46% increase of homes available versus this time last year. The catalysts for these market changes have not changed, and will continue to control. The number one factor is affordability. Increased taxes, interest rates, insurance costs, and higher prices continue to put a damper on brisk sales.

February marked the first tax notices being sent out by the assessors' offices. Ideally, you were successful in protesting valuations. Last spring, we provided data to many of our clients that resulted in a successful protest of their eye-popping tax valuations.

Sellers must be prepared for two rounds of negotiations, as buyers continue to have more inventory to choose from. Pre-listing maintenance is very important. Buyers will want to get the best value for their decreased purchasing power by aggressively negotiating inspection items after the initial pricing negotiations have ended.

Early January provided quick relief in interest rates and a short window to lock in a rate below 7%. Today, Freddie Mac is quoting 6.88% on a 30-year fixed loan. Insurance coverage has also become a challenge in the metro area; it is important to know if you can obtain coverage prior to submitting an offer.

Our expertise and decades of experience can help you navigate this evolving market.

As we began 2024, the frigid temperatures of January were thawed by a sudden reprieve from high interest rates. The market really froze going into the holiday season as buyers chose to wait until the New Year before being enticed back into the market in early January. Inventory that had been sitting through December was snapped up as buyers braved below zero temps and rushed to fill the void left by high rates and the seasonal holiday pause.

Average home appreciation year over year tracked at 5.43% for 2023. This may seem tame compared to the breakneck pace over the last several years, but this is a fantastic, safe return and an easy way to protect your purchasing power against higher inflation. We are still experiencing an inventory shortage, and sellers will continue to have pricing strength.

Buyers looking to capitalize on the slowdown over the holidays did well if they had an experienced negotiator in their corner. A lull in buyer activity from October through December offered excellent opportunities for price reductions and seller-paid concessions from motivated sellers.

With less Fed talk of spring rate cuts, mortgage rates rocketed back toward 7% in the last two days, and are currently sitting at 6.96% for a 30-year fixed. As these windows of cheaper borrowing present themselves, I expect to see an ebb and flow in inventory and opportunity. Let our years of experience work in your favor.