Is Denver in a Buyer's or Seller's Market? Let's Find Out!

If you're eyeing the Denver real estate scene, you've probably asked yourself, "Is Denver a Buyer's or Seller's Market?" It's a valid question, and we're here to help you understand the ins and outs of this dynamic market. This was created in the Fall of 2023, keep in mind this does change seasonally but it is also HIGHLY dependent on your market and even your neighborhood. Make sure you have a local expert that understands your neighborhood, when you are looking to buy or sell.

What's the Difference: Buyer's Market vs. Seller's Market

Before we dive into Denver's real estate landscape, let's break down the basics of what makes a market lean towards buyers or sellers:

• Buyer's Market: This happens when there are more homes up for grabs than there are eager buyers. In a buyer's market, buyers often have the upper hand. They can choose from a variety of homes, negotiate for better prices, and call the shots around inspections, appraisals, timelines etc.
• Seller's Market: On the flip side, a seller's market occurs when the demand for homes outstrips the available supply. Here, property prices tend to rise, bidding wars can break out, and sellers hold the cards in negotiations. In a seller's market, buyers loose their leverage for inspections and appraisals. Generally CASH is more important, so purchasing with an FHA loan or less money down is much harder.

What's Shaping Denver's Real Estate Market?

A lot of factors come into play when determining whether Denver is currently favoring buyers or sellers. Let's explore some of these factors:

1. Supply and Demand: The balance between available homes and potential buyers is a key influencer. When there are more homes than buyers, it's a buyer's market. When supply is limited, sellers have the advantage.
2. Economic Conditions: Denver's real estate scene closely mirrors the local economy. A thriving job market and rising wages attract more homebuyers, while economic downturns can lead to sellers being more open to negotiations.
3. Interest Rates: Keep an eye on mortgage interest rates. Low rates tend to spur buyer interest, potentially swinging the market towards sellers. Rising rates, on the other hand, can give buyers more bargaining power.
4. Housing Inventory: The development of new housing projects can affect the market by changing inventory levels and competition dynamics.
5. Location Matters: Different neighborhoods in Denver can have different market conditions. Some neighborhoods may be a buyer's paradise, while others are hotspots for sellers.
6. Seasonal Trends: Denver's real estate market has its own rhythm. Spring and summer often bring more buyers, while winter/fall can see a bit of a slowdown.

So, What's the Deal in Denver's Real Estate Market Right Now?

Historically Denver had been firmly in seller's market territory for a while, thanks to high demand, low inventory, and rising home prices. This is what we have been seeing for the past 5 years. Now with interest rates tipping over 7%, buyers are seeing a window of opportunity for more leverage. We are not technically in a seller's market, but if you're considering the delta to be the previous 5 years, this is a buyer's market in comparison.

For a true buyer's market we would need balanced demand and supply - which looks like having 6 months of inventory. Currently the market hovers between 1 and 2 months of inventory, so quite a ways away from balance. But in the heat of the seller's market we've seen over the past several years, supply was counted in DAYS, not months.

What buyers can expect in the Denver market now

Buyers can expect to have more time to decide if they'd like to submit an offer on a property. They can expect much more negotiation power for all aspects of buying (inspection, purchase price, appraisal, timing). First-time home buyers or buyers that are hoping to purchase with low money down or with loan terms like FHA or VA, it is not effecting purchasing power negatively as it once was. So ultimately - this is the best time buyer's have had to purchase a home in the Denver market in the past 5 years. We expect these conditions to continue through until March 2024. You have a window of time now!

What Sellers can expect in this Denver market now

Seller's that are pricing their homes correctly can still expect their home to go under contract within the first month being on the market. Exceptionally popular homes are still selling within the first weekend. But it's even more important to be working with an agent that understands your market/neighborhood and can provide an excellent pricing strategy.

If you are looking to sell and then buy, now is an excellent time for you. You may not get top-dollar for your home sale, but you will certainly be walking into equity if you buy right. Contingent sales are being accepted now more than they have been in the past, so you'll have added protection throughout the sell/buy process. Ultimately, now is a great time to sell if you're going to be buying. If you're looking for max income from your home sale, but don't need a replacement home - our recommendation is to wait for the spring of 2024 to sell.

Why Having the Right Agent Matters

We love that you are trying to understand the market, but the market in Denver is constantly changing. Working with the right real estate agent is the key to your success. Here's why:

• Market Expertise: A seasoned agent knows Denver's market inside out. They can crunch the numbers, spot trends, and tell you whether it's currently a buyer's or seller's market in your preferred area.
• Strategic Guidance: Your agent can craft a customized strategy based on market conditions. They'll advise on pricing, negotiation tactics, and timing to maximize your real estate transaction.
• Exclusive Listings: Agents often have the inside track on listings before they hit the market, giving you a head start, especially in a seller's market.
• Negotiation Skills: In a competitive market, negotiation prowess is gold. An experienced agent can negotiate on your behalf, ensuring you get the best deal possible.

‍

Book your 15-minute consult call. We focus on your goals and will walk you through the right strategy for you!

‍