We are at the half- way point and this year the Housing Market will have 2 stories to tell. The first half of the year included never-before seen price appreciation and buyer’s relinquishing most of their contractual rights. What we are now seeing is the beginning of normalization for the Denver Housing Market. DMAR shared that executed purchase contracts have been declining for the last 6 months and are now coming in at the slowest pace in nearly a decade. We are not seeing the effects of higher interest rates totally but expect that to take hold after the summer selling season is over. Sellers are seeing their properties sit on the market for a little longer because Buyer’s have decided to wait out the first weekend and see what happens the second week a home is on the market. Buyers also have higher costs now (it costs 55% more to buy a home now than one year ago) and they are being more patient when it comes to pulling the trigger on making offers.
If you are on the fence about selling your home the Denver Market is telling you that now may be the time. Fall indicators are pointing towards more inventory (we expect it to be higher but not off the charts higher), more days on the market, the end of crazy bidding wars and the end of forfeiture of buyer’s contractual rights.
There are several reasons we may not see a total dump of inventory to the market and that begins with homeowners staying in their homes for 11-13 years now instead of 5-7 years as it was before 2007. Secondly, there are many more investors providing homes for tenants and finally, higher interest rates make people feel like they are stuck in the homes they are in because they don’t want to pay higher interest rates to move.
There will be many moving parts to the second half of this year’s housing market, count on us to keep you in the loop as move to a more balanced market for both Buyers and Sellers.
Don’t hesitate to Contact us if you have any questions about your next move!