In September and October, it isn’t unusual to experience a 40-degree change in the weather during 24 hours in Denver. The mornings start chilly in the mid 40’s and by the afternoon we are enjoying sitting outside in 80 degrees. Denverites dress in layers for a reason! The swings in temperature keep us on our toes and lately, so has the real estate market.
When I look at the market data from September the word that comes to mind is “dithering”. The rates jumped around a bit over the course of a few days, and this kept buyers cautious. For instance, I have two cream puff listings in different parts of town that show beautifully, are priced competitively, and receive positive feedback from buyers. And yet, they haven’t been snapped up by a savvy buyer. One of them unfortunately came back on the market after going under contract quickly becoming part of the 35% of contracts that do not make it to the closing table (this is a high number). If you want more information on these homes, you know how to reach me!
Even though buyers have as many as 3 homes each to consider, they are taking their time making offers. Median days on market rose to 27, indicating that it could take a month to get an offer. This is in sharp contrast to the pandemic years when homes often lasted only one weekend before getting multiple offers and closing above list price. Things feel “hot and heavy” one moment with increased showings and strong open house traffic. And then, the phone doesn’t ring as soon as we thought it would after an incredible first date - confounding to say the least! Although my dating experience is well, dated, being married for 25 years, this market behavior is enough to drive a sane person a tad crazy!
While I am more of a creative than a statistician, I believe it is vital to watch for leading indicators of market shifts in different price ranges so you can take advantage of a swing that favors your position. My advice to buyers and sellers? The swings in opportunity are big and happen quickly, making it extremely important to work with a professional. If your realtor isn’t tracking the micro-level market data, it could cost you tens of thousands of dollars at the closing table. Without the right advice, you may take a price reduction too early thereby leaving money on the table or hold firm to a price that is too high and risk becoming a stale property that lingers on the market creating a narrative about the home that is often far from the truth.
These are changing times both in our country and the world, so stay vigilant and be poised to act when the timing is right! I’d love to delve in to all of this deeper with you so feel free to reach out for a more in-depth chat
