Denver Real Estate News – January 2024

LOCAL MARKET UPDATE

The Gift of Homeownership

As the holiday season comes to a close, homeownership continues to be the gift that keeps giving. Not only does it provide the tangible benefits of shelter, safety, and warmth, but nice financial benefits. Real estate is the single largest investment most people make in their lifetime, acting as the most effective means to achieve personal and generational wealth. Case in point, The Federal Reserve reports the net worth of a homeowner is over 40 times greater than that of a renter!

The Denver Metro area is seasonally based, so looking at the year-over-year data paints a more accurate picture of our market at this time of year than the month-over-month data. Most of the metrics from our Market Snapshot are positive year-over-year (except for the number of Sold Listings and Average Days in the MLS). With more Active and Under-contract listings, we may be seeing a more balanced market going into the new year. Plus the potential of lower interest rates could positively impact the final data from December helping to mitigate the typical downward trend that usually occurs at the end of the year.

The gift of a more balanced market seems to be the name of the game for this holiday season. The previous fluctuations in the market this year have been hard to keep up with, yet as mentioned last month, the data for 2023 mirrors, in many aspects, the pre-pandemic real estate landscape of 2019. After three years of unprecedented records, the market appears to be settling into a state of stability. Although we can’t predict what the New Year holds, it’s important to work the current market to your advantage based on your unique situation.

INFO FOR SELLERS

Spring is right around the corner!

Sellers in our Denver market are poised on the brink of an impending busy spring season, hopefully, marked by even lower interest rates and thus more buyers than originally anticipated. With the spring season on the horizon, typically gaining momentum toward the end of January and into February, and reaching its peak in March and April, sellers can strategically plan the timing of their listings.

This anticipation of increased market activity should prompt sellers to consider the current holiday period as a crucial window of opportunity. Suppose circumstances dictate that they must list their properties now. In that case, sellers can attract motivated buyers looking to settle in before the New Year by listing homes that are in great condition and priced well, to continue to attract offers within a week or two of listing. By staging their homes with a touch of seasonal charm and warmth, sellers can also leverage the festive ambiance to create a welcoming atmosphere, enticing potential buyers to envision their future celebrations within those very walls.

Conversely, homes in need of “work” linger on the market, awaiting buyers who often hold out for multiple price reductions before making an offer. So, if blessed with the gift of time, their homes would be most favorably positioned by either waiting to list for a few months or even better, getting the home ready for the impending surge in springtime demand.

(Info Source: D.M.A.R. (The Denver Metro Association of Realtors, YCRE Analysis)

INFO FOR BUYERS

There’s still time to get a deal!

For buyers with a home for the holidays on their wish list, this time of year historically marks an optimal period to embark on the journey toward homeownership. The current market conditions continue to create an ideal setting for potential buyers, offering a rare combination of favorable terms. Notably, the declining interest rates seem to present the most motivation for buyers on the fence. Paired with a decrease in market competition during the holiday season, buyers find themselves in a position with ample room for negotiation on price, concessions, and inspection items. This unique blend of opportunities affords buyers a prime time to explore the market with greater ease and deliberation than at any other time of the year. There’s no better time than the new year to make a fresh start in a new space!