We have heard the buzz about a so-called “balanced” housing market in the past few months. Though it is hard to say when we will hit a proper balance and a breath of calm, perhaps the real question we need to ask ourselves is “What is a balanced market?” and “What is best for me?” We don’t have all the answers yet (and that’s okay). It’s best to try to understand where we have been to predict where we are going.
While Denver is seeing more inventory, realtors aren’t seeing as many showable houses. Many sellers still think sales prices should reflect the high mark from earlier this year, and others are trying to sell off homes that present poorly. Quantity doesn’t necessarily mean it’s the quality buyers are looking for. Even with numerous buyers, we have found ourselves showing maybe a handful of homes per week in total.
In a market with rates so high, buyers are more intentional with their decisions. Clients aren’t buying just to buy! So if a home doesn’t meet all their criteria, it’s a skip – and that’s just fine! People are no longer assuming they can buy, and quickly sell, either. Since the rates aren’t as liquid as in the past, buyers are playing the long game. They are less willing to take a chance on a home because they are not planning on moving again – they want their dream home! Denver is more particular with their purchasing, and sellers are waiting longer to list.
People selling their homes have been late to the game. In the past few months, listing homes with March prices have not been viable – prices are definitely somewhat down from their high. Bidding wars are at a lull – but still happening for outstanding homes. Buyer and seller expectations are in different places, but there is one similarity. If you are looking to sell your home – make sure your expectations match the market. There is nothing worse than overpricing a home and then trying to catch a falling knife to find the real value at which it will sell.
While we shouldn’t jump to conclusions about the state of our market, we should look at where we are realistically. It’s important how we define a balance and the types of questions we ask ourselves. The main decision being, now or later? In the most in-demand neighborhoods, we are still seeing bidding wars over homes – just not with as high of rates. As a result, there is less urgency, with people sitting on their hands waiting for the right moment. But overall, buyers have plenty of opportunities to find a home in the Denver market.
The name of the game is intention. Look at where you are in your life – can you afford to move? Are you in a good place to put your house on the market? Is the home in your budget? This may be your primary residence – you should love where you live! Now may not be the moment for an investor move. In short, don’t overstretch yourself just to get a house. Take your time pondering and asking your realtors (especially your Hatch Real Estate agent) questions. Then, if you are in a good place, make a move! We hate this expression, but it is true right now – Date the rate and marry the house. Rates will eventually come down.
You want the truth? Things are a bit slower in the market currently. Right now, it is a trend to hark on the state of the market – from water coolers to soccer games, everyone wants to talk about the economy and fears of a recession. Realistically, there’s a strong chance interest rates will lower in the next year or so. So strap in and weather the storm, or make your next move. Regardless of what the headlines say, do what is true to your situation.
