Housing Market Update & All Things New

Housing Market Update & All Things New

  • Victoria Merchant
  • 01/5/23

Kids are back in school today, and it couldn’t have gotten here sooner. Plus, I kept them breathing throughout the long break, so that’s one new year’s resolution down.  

I’m getting back into my groove now and ready to take it all on- the work, the family, the commitments. I do feel like I have to get refamiliarized with the whole work-life balance thing, though. It’s post-break day one, so I’m giving myself some grace. Tomorrow, it’s on. 

On New Year’s Eve, the family went skiing in Loveland; it was a success. The kids had lessons and did a great job. Tag was tasked with lots of carrying of that tiny but heavy child, Sterling. What a great dad, and I’m just gonna say it, he’s also a stud. 

The kids have a couple more lessons this season and will undoubtedly be professionals afterward.

My dad and brother arrive this weekend!! I can’t wait. I’m a little stressed because I’ll be working the whole time, and I always put pressure on myself to entertain when family comes. I know they’ll be cool that I can’t spend all my time with them, but still. It weighs on me. 

I kinda made some new parent friends this weekend at a birthday party Bridger went to. I’ve known them forever, but we never really spoke very much. It’s always difficult to connect with people as you get older, so I welcome the new possibility! 

So, for this year, I’m going to journal, meditate, and make some affirmations to start each day. Maybe that will reduce some stress and anxiety in the morning and help start the day off right. I’ve done things like this before, and I always enjoy it. 

Pro winter tip: We were just introduced to using Aquaphor on our extremely dry hands, and it has changed our lives. Do it. Your skin will thank you. 

My Real Estate Status

My clients from Washington are still looking, and I showed them a house that was very far away earlier this week- it was a no-go. Then, they wanted to see another house (pretty late at night, too) that was very far away, but the sellers put the kabbash on it because they couldn’t get it ready in time. Can’t lie; I didn’t hate that decision. Alas, I will be doing the 100-mile (one-way) drive soon.

Luckily, the clients are lovely, which makes all the work easier, but if I’m honest, I’m looking forward to getting this driving all wrapped up, so fingers crossed that this next house is the one. 

As far as the market as a whole:

  • Interest rates are holding steady little tick up today
  • Listings have increased a bit in certain areas lower in others
  • Multiple offer situations are still happening when homes have appealing finishes and price points 
  • Price reductions are occurring

Ways Homeowners Can Use Their Equity

Current Denver Area Real Estate Market

"2022 Is a wrap and what a year it was. Beginning in 2022 brought out substantial records as inventory took a nosedive and buyer demand skyrocketed when interest rates began to increase. We peaked out in April 2022 with an average single family detached home selling for $819,090 and ended the year with $701,949 for an average sales price. What started the year off as a rocket saw the market fizzle as affordability was impacted by higher interest rates and waning demand. We took so much in the first 4 months of the year and ended up giving back a substantial portion in the latter part. We still managed to have historically high appreciation when we average out the entire year with an average sales price growth of 11.6%. Your heat maps for appreciation by zip code are available for download in the links below.

For the month of December, the sellers who wanted to sell were very serious about getting their home under contract and upped the ante by bringing out the price reductions. 59.4% Of detached single family homes closed with price reductions averaging -7.8% from their original list price. Attached single family saw 46.1% of homes reduce their price with an average of a -6.2% reduction. The last time we saw price reductions on this scale was in December of 2010. Until interest rates come down, I don't think we will see price increases in Greater Metro Denver. The media is going to call attention to negative sales price growth early in 2023 as we won't have the same takeoff that we did in 2022 due to the shift between supply and demand. The market continues to shift from the hyper market pandemic years into something that more closely resembles the market cycles of 2013-2019.

Many people are looking to time the market and it's tough to peg down when the market will really pick up in 2023. Again, I'm putting a lot more weight on 2013-2019 when our market was more predictable, and we had similar levels of supply and demand as we do today. In the past we would see a bump of market activity after the last game played by the Denver Broncos, so hopefully earlier this year since we won't be in the running for the Super Bowl. The market then again boosts the weekend directly following the Super Bowl a large pick up of market activity. Denver has trended towards an earlier selling season with the end of February, March, April and May being the best months in which to list. This image can be found by price range in the Weekly Report download link. Market pick up can vary by price range, notably for homes over $1,000,000 listing earlier in February or March providing the best market conditions favorable for a seller. Buyers will find that the market eases, prices fall and negotiating power is enhanced in the later summer and fall months."

3 Best Practices for Selling Your House This Year

A new year brings with it the opportunity for new experiences. If that resonates with you because you’re considering making a move, you’re likely juggling a mix of excitement over your next home and a sense of attachment to your current one.

A great way to ease some of those emotions and ensure you’re feeling confident in your decision is to keep these three best practices in mind.

1. Price Your Home Right

The housing market shifted in 2022 as mortgage rates rose, buyer demand eased, and the number of homes for sale grew. As a seller, you’ll want to recognize things are different now and price your house appropriately based on where the market is today. Greg McBride, Chief Financial Analyst at Bankrate, explains:

“Price your home realistically. This isn’t the housing market of April or May, so buyer traffic will be substantially slower, but appropriately priced homes are still selling quickly.”

If you price your house too high, you run the risk of deterring buyers. And if you go too low, you’re leaving money on the table. An experienced real estate agent can help determine what your ideal asking price should be.

2. Keep Your Emotions in Check

Today, homeowners are living in their houses longer. According to the National Association of Realtors (NAR), since 1985, the average time a homeowner has owned their home has increased from 5 to 10 years (see graph below):

This is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your loved ones grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.

For some homeowners, that makes it even harder to negotiate and separate the emotional value of the house from fair market price. That’s why you need a real estate professional to help you with the negotiations along the way.

3. Stage Your Home Properly

While you may love your decor and how you’ve customized your home over the years, not all buyers will feel the same way about your design. That’s why it’s so important to make sure you focus on your home’s first impression so it appeals to as many buyers as possible. As NAR says:

“Staging is the art of preparing a home to appeal to the greatest number of potential buyers in your market. The right arrangements can move you into a higher price-point and help buyers fall in love the moment they walk through the door.”

Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. A real estate professional can help you with tips to get your house ready to sell.

Bottom Line

If you’re considering selling your house, reach out to a local real estate professional to help you navigate through the process while prioritizing these best practices.

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