How to Make the Most of the Real Estate Market

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How to Make the Most of the Real Estate Market

If you’ve been paying attention to the real estate market, you know that things are shifting. While any kind of change can make consumers wary, by taking a closer look, we can actually see that there is much to be excited about in today’s home market.

Knowledge is Power, Power is Opportunity

It’s true, home sales are down and interest rates are up – but let’s reframe this picture and compare it to typical, pre-pandemic market conditions and historical data. Not so bad now is it? You see, the boom in the real estate market that we saw during 2020 and 2021 was a dramatic increase as a result of a life-changing event we experienced as a society. Now, as we continue to pick up the pieces, we are seeing the market play out the second half of “what goes up, must come down” – but “down” doesn’t have to be scary. In fact, it might even yield more opportunities.

These settling trends are evidence that once break-neck speeds that the market was traveling at are now easing up. Consumers hoping to sit on either side of the closing table, whether buyer or seller, still have plenty of chances to start their next chapter in Colorado’s real estate market.

What to Know If You’re a Homebuyer:

There are plenty of things that most consumers already know about the market such as, home prices are rising and so are interest rates on mortgages. However, ripple effects from these changes have also introduced new, beneficial shifts that may benefit homebuyers in the market for a new home.

While we are still operating within a “sellers’ market” here in Colorado, homebuyers now have more leverage when making an offer on a home. Sellers should no longer assume that their home will automatically have multiple offers and sell for above-asking price. A recent boost in available inventory has provided buyers with more options from which to choose. That, plus the hike in interest rates which may have taken some players out of the game, has resulted in a scenario in which buyers have the power to ask for inspections and make more reasonable offers while remaining competitive.

In fact, according to data from the Metro Denver Market Review, compiled by Megan Aller of First American Title, the odds of selling a detached single-family home decreased by 23.3% in a year-over-year comparison to July of 2021.

What to Know If You’re a Seller:

Despite the rate at which homes are selling taking a dip over the last few months, now is still a great time to list your house on the market. Right now, finding a skilled real estate advisor is the most important step in successfully selling your home. A home’s debut on the market means everything, so accurately pricing your property the first time is the best way to ensure you get the most value for your home.

The good news is that home values across Colorado are still appreciating. In Denver Metro, the average home price was $780,808 at the halfway point for the year – a 15% increase from year-ago levels. By partnering with an experienced professional, you will be able to sell your home quickly and for the price it deserves.

The other factor that sellers should take into consideration is timing. The real estate market is typically hottest in the late spring and early summer. If you’ve been considering a move and would like to sell your house, now is the time to do it. Typically, the market cools in the fall and winter months – making time of the essence for anyone considering upgrading, downgrading, or adding to their real estate portfolio.

Whether you are buying or selling a home in Colorado, understanding the market trends is a key component and the first step in writing your own success story. Allow LIV Sotheby’s International Realty to help you navigate the changing market in real estate today.

 

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