The Current State of Denver Real Estate: July 11, 2022
If you are looking for housing numbers, look at the bottom of this page for a link to the June housing stats. If you want a feel for the housing market, this is my professional opinion as to what’s happening now and what to expect going forward.
The Denver metro area seller’s market is officially OVER! Housing prices are starting to drop and the number of showings on most listings have come to a crawl. There are still some buyers out there, but generally, those are people who HAVE to buy, not just want to buy. With a recession on the horizon, gas and food prices at record highs and inflationary prices everywhere you look, most people are taking a step back and waiting for the next shoe to drop. Interest rates have steadied and even come back down into the fives, but it’s still an uncertain time for most buyers.
Even homes priced at $1.5 million or more, are also starting to be negatively impacted as well as new home builders. Rents too though are still increasing, so, with interest rates leveling off, this might be a good time to buy. Most people don’t time the housing market well, as with many things in life. But, now that the intense frenzy to buy is in the rearview mirror, in my opinion, this is actually a good time to buy, especially if you are renting or if you are simply wanting to purchase a new home. You no longer have to pay over asking, give up your rights to an inspection and appraisal and can actually keep your first born!
Inventory generally, is still low and the population in the metro area is still increasing, so I don’t expect the housing crash experienced in 2008. The main difference is the equity in the homes now versus then. Lenders are still insisting on money down, so it won’t be as easy to just walk away, as prices do start to drop a little. Most of the appreciation that occurred the first part of the year has vanished, but home values are still up considerably, year over year. Most homeowners will still have equity in their homes, so if they do need to move, they should be able to sell, which will help balance the market out a little towards the buyers.
As for sellers, make sure you hire an experienced agent, who knows the area and understands it’s more than just sticking a sign in the front yard and taking a couple of photos with their phone. That’s where The Tucker Team comes in and can help you navigate this ever-changing market, whether you are looking to buy or sell. We always provide professional cleaning, staging, professional photographs, 3D Tours, virtual tours and a wide array of other marketing techniques to get your home sold.
Click on this link for the most recent Denver Metro Area Housing Stats courtesy of SMDRA: June 2022 Denver Area Housing Stats Video