How Has the Market Changed for Denver Home Sellers?
The Denver Metro housing market has been a seller's market throughout the pandemic, but is this still the case? The current trends are pointing towards an end to the real estate market conditions that created a bonanza for sellers. Many issues created a high-pressure market environment severely skewed in favor of sellers. From sky-high home prices, intense competition between buyers, and tactical play from sellers waiting for the right moment to put their homes for sale.
It's worth saying outright: things are changing, and there are things home sellers need to be aware of today that weren't true last year. This applies across the Denver area, including the Southeast communities of Parker, Highlands Ranch, Castle Rock, Franktown and Elizabeth. Here's what Sellers should know:
1. Home prices growth across Denver and surrounding communities is returning to pre-pandemic levels
This is not the same as saying home prices are declining; they're not. Prices are still growing and won't begin falling in the foreseeable future. It's the rate at which they're increasing that's changing. All the signs point to a return to pre-pandemic levels of growth. So, instead of the unprecedented near-20% year increases, we're now seeing the more modest 7-8% year-over-year growth, according to the Zillow Home Value Forecast. The number of home sales expected to go through in 2022 is 5.46 million,10.8 percent down from 2021.
This means that the waiting game is over for sellers in practice. You might have been thinking about selling your home but were waiting for home prices to reach their peak to maximize their returns on the sale. But the peak has already passed. It is doubtful that we'll see any more of the skyrocketing levels of home price increases any time soon. So, if you're unsure whether you should be putting your home up for sale right now, the answer is yes.
2. Popular relocation hotspots have the highest home prices (Denver is one!)
The way local home prices behave is always different from national averages. And who doesn't want to live in Colorado?? An area that's extremely popular with homebuyers will have different housing market conditions from one that homebuyers are keen to leave. In many cases of post-pandemic migration patterns, these local conditions have a marked effect on home values. If you are in a popular neighborhood, you are in luck. You can command a higher home price even if the overall trend is for slower growth. Redfin calls these "migration hotspots" and reports that they have the highest inflation rates.
If you're not in one of those areas, you can still sell at a reasonable price if you know who your potential buyers are. An excellent real estate agent with local knowledge of your area can help find these buyers.
3. More affordable areas are in demand
The overall trend among homebuyers right now is downsizing and saving on housing as much as possible. Moving patterns indicate a strong preference for more affordable areas. People are moving from the biggest and most expensive cities to smaller urban and suburban areas. These smaller communities offer good amenities and schooling but don't cost as much as the traditional vast metropolitan areas. Home sellers need to be aware of this.
This doesn't mean you won't be able to sell if you are a home seller living in a metropolitan area. There is always movement both ways, and a general pattern away from a city doesn't equal an exodus. You need to market your home to the right buyer.
4. Homebuyer competition is still incredibly high
As a home seller, you will see headlines like "homebuyer competition drops to the lowest levels in two years" and think you'll struggle to sell. This is not the case. Homebuyer competition pre-pandemic was already very high, with record numbers of millennial homebuyers entering the housing market in search of their first home. This is a generational trend, and it won't go away any time soon. Indeed, you may not sell your home within days of it going on the market, as was so often the case during the pandemic. But you will still sell within weeks in many places.
5. Your first showing may not result in a buyer
One of the most prominent features of the pandemic-era housing market conditions was that many homebuyers were willing to waive contingencies to secure a home. There is evidence that this is no longer the case. As Redfin deputy chief economist Taylor Marr says: "buyers are increasingly keeping rather than waiving inspection and appraisal contingencies. That gives them the flexibility to call the deal off if issues arise during the home buying process".
Some buyers may call off a deal after finding a cheaper home. Others may be forced to backtrack after a mortgage application falls through. While inconvenient, this is a common occurrence and something you must prepare for by giving yourself more time to sell this year than last year.
6. An experienced real estate agent is more important than ever - so call Cher Revolinski!
Housing market conditions are a little trickier for home sellers this year than last year. It is even more critical this year than last year to get a real estate agent with solid experience and expertise in selling your type of home in your area. This will maximize your return on the sale and minimize the potential for delays and a deal falling through.
You may be asking about timing. Enjoy this next post about Did You Miss Your Window to Sell? You may also want to check our next blog on Why Waiting To Sell Your Denver Home Can Cost You A Fortune.
We'll Help You Navigate a Shifting Market
Selling your home can be stressful, especially as there are shifts happening in the market around us. Through experience, we're prepared to help you navigate and succeed in this market.
Cher Revolinski Extra Mile Homes Real Estate Coverage Area
Cher Revolinski – Buyer, Seller and Acreage REALTOR agents specializing in the following Towns and Cities in the Southeast Denver Metro area: Parker, Aurora, Lone Tree, Highlands Ranch, Centennial, Denver Tech Center, Englewood, Greenwood Village, The Pinery, Cottonwood, Meridian, Castle Rock, Castle Pines, Castle Pines North, Elizabeth, Kiowa, Franktown, Foxfield, Larkspur, Littleton, Sedalia.
Popular Neighborhoods in South Denver Metro Area: Hidden River, Idyllwilde, Canterberry, Clarke Farms, Challenger Park, Pradera, Timbers, Pinery West, Pinery SW, Pinery Glen, Cobblestone Ranch, Bradbury Ranch, Auburn Hills, Rowley Downs, Sagewood, Willow Park, Stroh Ranch, Willow Park, Stonegate, Villages of Parker, The Meadows, The Woodlands, Parker North, Horseshoe Ridge, Horse Creek, Meridian, Meridian Village, Sierra Ridge, Parker Homestead, Newlin Meadows, Anthology, Antelope Heights, Robinson Ranch, Hidden Village, Crest View, Parker Ridge, Bell Cross, Reata North, Dove Ridge, Compark, Saddlebrook Farms, Butterfield, Pine Bluffs, Preston Hill, Highlands Ranch, Tallyns Reach, Saddle Rock, Wheatlands, Rockinghorse, Blackstone, Heritage Hills, Acres Green, Carriage Club, Centennial Ranch, Muirfield, Plum Creek. Counties: Douglas County, Arapahoe County, Jefferson County, Elbert County, Denver County, Colorado. Zip codes: 80134, 80138, 80012, 80015, 80016, 80104, 80106, 80107, 80108, 80109, 80111, 80112, 80115, 80116, 80117, 80121, 80122, 80124, 80126, 80130.