February 2024 Market Report
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As the spring selling season kicks off, the question on everyone's mind is whether the luck of the Irish translates to the Denver real estate market, says the Denver Metro Association of Realtors’ Market Trends Committee.
Some buyers and sellers may appear lucky, but don't let appearances fool you. They had a strategy in place with their Realtor® to ensure the odds were in their favor.
Well-informed and educated sellers know interest rates have ticked up again; however, they also know that many buyers are experiencing spring fever and are sick of sitting on the fence watching home prices increase. So, savvy sellers got their property on the market and knew how to stand out. In fact, new listings increased 29.12 percent month-over-month and 22.63 percent year-over-year. But these sellers also knew they had more to compete with as active listings at month's end rose 13.14 percent to 5,511 homes, an astounding 45.87 percent gain year-over-year.
Serious buyers are discerning and know inventory is growing. Pending sales rose slightly by 12.70 percent month-over-month to 3,514, showcasing that buyers are taking their time to choose the right home for their needs. As a result, sellers who are winning in this market spent time making sure their homes are in show-ready condition. Clutter has been removed, HVAC systems have been serviced, windows have been washed and sewer lines have been cleaned. In short, if sellers executed their plan correctly, they experienced multiple offers and maximized their profit.
Buyers, on the other hand, have a different strategy. While some were swept into multiple offers on their dream home, others understood they may find gold at the end of the rainbow if they broadened their search parameters. These buyers understand that more inventory is coming to the market and that they will have options. They are also aware that they can negotiate on price and terms up-front, as well as negotiate at inspection ... and negotiate is what they are doing. Difficult inspections have been on the rise over the last few months. If buyers feel they are paying top dollar due to increasing mortgage rates, they want their new home to be in move-in-ready condition and are making sure the seller handles deferred maintenance before closing.
Conscious buyers have another new strategy in their playbook. Home insurance availability has become a serious issue across the country for homeowners, Denver included. As such, buyers are considering home insurance concerns before submitting an offer. They are reaching out to their insurance providers to verify they can obtain coverage in their desired area of town. They are then obtaining a CLUE (Comprehensive Loss Underwriting Exchange) Report, which details past claims and uncovers potential hurdles before submitting an offer to help facilitate a smooth transaction. This is invaluable information as some insurance providers are declining coverage, even in Metro Denver, which can easily derail a transaction.
The spring season is heating up, and the best way to find your treasure is through thoughtful strategy. Prepared sellers can curb a second round of negotiations with buyers at inspection, while strategic buyers know what they want before shopping and the options available to them.
Learn more about the market from the Denver Metro Association of Realtors.
