Denver Real Estate Market Update October 2023

 Denver Real Estate Market Update October 2023

🏡Michael Kozlowski Ranked as High as the #1 Individual Agent in the State of Colorado! Already Selling Homes for Above Asking Price in 2023 with Multiple Offers!🏡

INTEREST RATES! INFLATION! INVENTORY!

The Fall Market is settling in with some unique characteristics, and these three words are playing a major part in buyers and sellers decisions every day! They can feel Intimidating at times, but we are also seeing the Invincible passion and strength for the desire to own a home and build wealth and security through Real Estate!

The question asked daily: “Is this a Buyer’s or a Seller’s Market?” Quite frankly it feels like Nobody’s Market at the moment, as nobody is fully happy with how quickly their home is selling as a Seller or the price they are paying as a Buyer!

This 2023 market actually mirrors the ebbs and flows of the markets we’ve seen between 2013-2019 with a few variations. Most of the housing metrics remain fairly stable, however they also come with challenges and opportunities.

- Through the 3rd Quarter of 2023, the number of New Listings and the number of Sold/Closed properties is down almost 21% which shows that the market is smaller, which is expected after the boom years of the Pandemic!

- The most notable metric is that prices are holding steady for now, and the Average Price of a Single Family Home closed at $769,000 and the Attached Homes closed at $478,000 which are both only down approximately 1.0% from 2022!

Sellers, you have a smaller window for success before the Winter months settle in, so please price correctly, and keep in mind that about 60% of all Closed transactions this year offered to pay some Buyer Concessions to assist with their Interest rates and closing costs. Patience is a virtue combined with proper pricing and our expert marketing, and you will have success this Fall.

Buyers, this is an opportune time to circle back and re-visit the market as homes are sitting on the market longer, and more negotiation is happening including concessions to assist with affordability. First time Buyers are making a comeback, and if you are thinking about moving up to a larger home, the fourth quarter looks encouraging!

 

Denver Real Estate Market Update September 2023

 Denver Real Estate Market Update September 2023

🏡Michael Kozlowski Ranked as High as the #1 Individual Agent in the State of Colorado! Already Selling Homes for Above Asking Price in 2023 with Multiple Offers!🏡

Summer is over and Fall is in the Air!

We are so excited to see Fall arrive in Colorado, and in the Denver Metro Area as the crisp night air comes back, the leaves begin to change, Football Season is full speed ahead and all of the distractions of Summer activities are behind us. It feels good to get back to our routines and normal disciplines of life with kids back in school, and we are very excited to see the second busiest time of the year for Real Estate activity come alive again.

The Fall Market after Labor Day, and right up to the Holidays is a busy time of year for Buyers and Sellers alike! The Spring and Summer markets were less active than normal with a shifting market and mortgage environment. The demand for buying homes remains strong, in fact Denver still ranks as the fourth-strongest house market in the Nation!

Here is some great news if you are a Buyer: Active Inventory is now at 6,858 Single Family and Attached homes, which is almost two months of Inventory and 9% higher than last month.

This is the new definition of a balanced market, and to many Buyers it will feel a little like a Buyer’s Market. Homes are sitting on the market for longer periods of time before receiving competitive Offers, but Buyer’s beware the good houses that show well and are priced correctly are still selling quickly, so be decisive!

Seller’s there is good news for you as well: the market is full of buyers that didn’t buy over the Spring and Summer and want to buy a home before the snow falls! If you need to sell, please prepare and price your home correctly and it will sell in this Fall Market!

We are experts in this arena, and ready to help you have a successful transaction! As always, please call, text or reach out anytime!

Denver Real Estate Market Update August 2023

 Denver Real Estate Market Update August 2023

🏡Michael Kozlowski Ranked as High as the #1 Individual Agent in the State of Colorado! Already Selling Homes for Above Asking Price in 2023 with Multiple Offers!🏡

The typical Summer slow down in July and August in the Denver Real Estate Market, has many Buyers and Sellers concerned about the overall health of this market!

This Summer slowdown is very common, and happens almost every year, however this one is also driven by the increase of Mortgage Interest Rates to around 7% for a 30 year fixed rate mortgage.

Several factors in our National Economy and World events may also bring some pause to buyer activity, but we have some good news as well for Buyers and Sellers. Most Economists agree that the Housing Market is more likely to correct itself from the double digit price jumps in home prices over the past few years rather than a crash.

Our prediction is the Housing Recession may be over, and the recovery is very close.

Quick Facts:

- Active Inventory is growing and currently at 6,300 residential homes. Buyer demand is still very high, with Buyers anxious to find the right home at the right price with an affordable payment.

-Single Family Homes average price in July was $782,624 which is .41% higher than July 2022, and Attached Homes were at $484,000 which is 1.73% higher than July 2022.

Buyers, this is your opportunity to find a great home at a fair price and terms and realize that prices are not coming down like many expected. Lock your price in now, and you can always refinance as Interest Rates lower in the near future.

Sellers, the buyer demand is real so this is the right time to price your home competitively, prepare it to show very well, and consider offering a 2-1 Buydown on interest rates to attract the best buyers and increase affordability.

The Spring market was slower than expected, and the Summer market is crawling, we expect a very healthy Fall Market!

Enjoy the fast moving Summer! Buyers Get Ready, Get Set, Go! 

Denver Real Estate Market Update July 2023

 Denver Real Estate Market Update July 2023

🏡Michael Kozlowski Ranked as High as the #1 Individual Agent in the State of Colorado! Already Selling Homes for Above Asking Price in 2023 with Multiple Offers!🏡

The first half of 2023 is complete, and in many ways the turning point for the year. We are excited to share the Metro Denver Housing Outlook and Midyear Update!

Historically, the data shows that purchases start to slow down, prices decline and inventory should peak soon after the July 4th Holiday, however this Spring’s Selling Season proved to be disappointing compared to Seasonal expectations, and we may see some surprises the second half of the year!

Let’s look at some indications for positive activity in the numbers:

- First, the Active Inventory for sale is at 6,070 which is 16% higher than last month.

- New Listings were at 5,628 which is almost 9% higher than last month.

- Pending Sales were at 4,385 and that is almost 6% higher than last month.

- The downside of the market is Closed Properties, as we only had 4,109 Closed Properties this month, and that is down -7.0% from last month and Closings YTD are down -23%.

Several factors are influencing the housing market in uncertain terrain, with the market looking for stability, affordability, and creativity! Mortgage rates are affecting Inventory, stability, and affordability, but with inventory growing and activity slowing, it looks like we are heading toward a normalizing market!

Buyers, this is great news as you will have a bit more control the 2nd half of 2023.

Sellers, this is a great time to prepare your home for sale, and have it showing the best way possible, as buyers are still paying top dollar for an updated house. If you have experienced some hail damage, please reach out to your insurance company as soon as possible. Buyers always expect a good Roof!

Please call us today, and let us show you how our Real Estate experience can help you navigate your individual Real Estate needs!

Denver Real Estate Market Update June 2023

 Denver Real Estate Market Update June 2023

🏡Michael Kozlowski Ranked as High as the #1 Individual Agent in the State of Colorado! Already Selling Homes for Above Asking Price in 2023 with Multiple Offers!🏡

SHADOW INVENTORY OR SHADOW DEMAND!

Since the beginning of the year, we have predicted that the first half of the year would be challenging with some uncertainty in the market and hurdles to jump over! As we close out our Spring market, and reflect on these challenges, we can see much of the Real Estate market failing to engage in a normal Spring behavior!

Many have predicted that we have Shadow Inventory about to enter the market, with some pent-up demand for Sellers that need to sell, and it seems that many Sellers are in love with their current mortgage rate and not quite ready to list their homes. This lack of Inventory has created some Shadow Demand, as Buyers are experiencing some fatigue and either waiting for the perfect home or to uncover a good deal and what they perceive as good value!

Here is some Good News! The numbers are starting to show our second prediction that the second half of the year will be much more active!

- Active Listings at the end of May are at 5,228 which is 13% higher than April!

- New Listings in May are up almost 9% from April!

- Pending Sales are up almost 3%

- Closings in May were up almost 7% from April!

- Average Prices for all Residential Homes were up 2.7% from April!

The question now is: What is the cost of waiting?

Sellers: If you have been hesitant to enter the market, now is a great time as the Summer buying activity will be in full swing!

Buyers: Inventory is growing, Sellers are getting more realistic and we should see a downward trend with Interest Rates!

Please call us today, and we can guide you through this improving Real Estate Market!

Let’s Bring on Summer!

Denver Real Estate Market Update May 2023

 Denver Real Estate Market Update May 2023

🏡Michael Kozlowski Ranked as High as the #1 Individual Agent in the State of Colorado! Already Selling Homes for Above Asking Price in 2023 with Multiple Offers!🏡

Our Market Update for May begins with a “Tale of Two Markets”! What Buyers and Sellers are experiencing in this market is not Universal!

How is the market doing in May 2023? Not an easy answer currently as Inventory continues to be perplexing, and stubbornly lower than expected, which limits Buyers options for homes to see and buy.

- Active Inventory at the end of April was 4,620, up only 2.3% from last month.

New Listings for April were only 4,758, lower than the New Listings in March at 5,100, quite the anomaly. Historically, the market has averaged 10-13% more New Listings in April vs March as the Spring Market picks up speed.

It seems as though we still have some Seller apathy in 2023, however we may see some of the best opportunities for increased Inventory from Investors that may want to sell their properties before new possible legislation is passed that has been introduced in our State Legislature.

- Year to date, the market has Sold 12,769 Residential Properties, which is almost 24% less than this time last year!

- The Average price of a Single Family Home was $741,500 in April which is 4% less than last year. The Average price of Condos and Townhomes was $470,600 which is 1.5% less than last year.

The Tale of Two Markets shows up when looking at listings and days on market. Some Listings continue to see a lot of Showing Activity, with multiple offers and selling above asking price, while other Sellers are sitting on the market for several weeks with two to three price reductions before receiving an acceptable offer.

It all comes down to price point, location, finishes, updates and general condition of the home, as Buyers are much more price and payment sensitive and sometimes a little picky.

As this market adjusts each month, we are so grateful to have the opportunity to share our knowledge and experience and look forward to helping you navigate your Real Estate needs!

Denver Real Estate Market Update April 2023

 Denver Real Estate Market Update April 2023

Team Koz Michael Kozlowski Selling Homes for Above Asking Price with Multiple Offers Already in 2023!

We have survived all of the various School Districts Spring Breaks, and have enjoyed a beautiful Easter Season with all of the new flowers beginning to bloom and the grass is getting greener!

Buyers have shown a strong desire to purchase a home, after taking a long break the second half of 2022. Sellers are slowly waking back up, and deciding what their household needs will be this year as well.

Baby boomers have roared back into the market as repeat buyers with equity and now make up 39 percent of homebuyers surpassing Millennials at 28 percent, who held this top spot since 2014! This increase in Buyer activity has kept Inventory lower than expected, but this varies depending on area and price range.

- Days on Market have decreased from an average of 48 last month to 37 this month, and that’s a big change in one month.

- Active Listings are at 4,516 which is up 20% from last month and 103% from this time last year and still lower than expected.

Average prices are sending mixed signals, as the Buyer demand increased last month, we saw the Average Price for a Single Family Home at $743,000 which is up 2% from last month, however Year to date the average price of a single family home is down 2.89%.

Townhomes and Condos were an average price of $475,000 and that is a half percent less than last month, and the same YTD.

This is Primetime in the Real Estate market, so Sellers if you need to sell or are just thinking about it, please call us soon and we can advise you with the best options available to maximize your equity.

Buyers, you will see some the best choices and inventory right now as Inventory grows, and interest rates are more favorable. Please call us today, as we would love to help you get from where you are right now to where you Dream about!

Enjoy this beautiful Spring!

Denver Real Estate Market Update March 2023 - Team Koz Michael Kozlowski

 Denver Real Estate Market Update March 2023

Team Koz Michael Kozlowski Selling Homes for Above Asking Price with Multiple Offers Already in 2023!

THE SPRING MARKET HAS ARRIVED, ALONG WITH MARCH MADNESS!

As we see the Spring Market come alive, Daylight Savings, New Flowers and the hopes of warmer days ahead, we have two different speeds of the Real Estate Market! Buyers have become very active in the market, and are looking at homes as quickly as possible, while Sellers are slower to arise from their slumber.

Inventory continues to be a challenge as we only have about 3,800 Active Listings on the market, and that is 8% less than last month, but 208% better than March 2022.

As we study the New Listings each week, the market continues to put more homes in Pending status than the number of new listings that come on the market! Buyers are truly gobbling up most of the new inventory, however we do see some subtle changes as buyers are slower to make decisions while assessing affordability.

Multiple Offers are still happening, but only if the home shows well, is priced correctly and mostly below $600,000 or above $1 Million or has a unique or desirable location.

Mortgage rates continue their roller coaster, as Inflation is very stubborn and slow to return to normal!

Buyers: Now is the time to get out and look at this new Spring Inventory! You will be surprised at your choices and more reasonable negotiations.

Sellers: It is time to plan seriously your preparation for putting your home on the market. This market will reward you well, if you prepare your home to show well, price it correctly.

Let’s enjoy the early Spring and let us help you move to where you dream of living!

Denver Real Estate Market Update February 2023

 🏡 Denver Real Estate Market Update February 2023 🏡

Michael Kozlowski Ranked as High as The #1 Individual Agent in the State of Colorado! Already Selling Homes for Above Asking Price with Multiple Offers in 2023!

February is known as the month of Love, and as we examine the behaviors of the Denver Metro Housing Market, there are a lot of indications that Buyers and Sellers might Love the opportunities in the market in 2023!

For starters, buyers are coming right back into the market! Inventory is falling, while demand is rising and home prices remain soft, but for how long?

Buyers seem anxious to get under contract before the Spring rush, and are paying attention to the favorable data on Inflation slowing down. The Federal Reserve announcing a slowdown on their battle with Inflation and Wall Street celebrating helped Mortgage Interest Rates fall below 6% for a 30-year fixed rate loan. Mortgage Applications were up 15% in January!

Here are some numbers to show the January Activity:

- Active Listings are at 4,120 which is down 13% from December, mostly because of increased Buyer activity.

- New Listings in January were up 65% and Pending Sales were also up 51% over December.

The market is waking up from the late 2022 declines, and the typical Holiday Season distractions. The Average prices for Single Family detached and attached homes were both down a combined 1.5% from December, but this may change sooner than we expected.

Buyers will want to start looking sooner than later to take advantage of the current lower prices and interest rates, and beat the Spring activity that begins very soon!

Sellers will want to re-engage and prepare your homes quickly if you need to sell this year! You will want to be realistic in preparing and pricing, but don’t need to break the bank in preparing your home. Buyers are active now and looking for New Inventory to come on the market! A well prepared, priced and marketed property can still expect to sell in 2-3 weeks with the possibility of small bidding wars again.

Denver Real Estate Market Update January 2023

Denver Real Estate Market Update January 2023

Michael Kozlowski Ranked as high as the #1 Individual RE/MAX Agent in the State of Colorado! Selling Homes for as High as $250,000 Over Asking Price in 2022!

Happy New Year!

As we predicted last January, we saw two very different markets in 2022!

The first half had very low Inventory, very high demand, and low Mortgage Interest Rates! We felt a market tailwind that pushed prices up with extremely high demand, and multiple offer activity with an appreciation pace close to 20% annually! We predicted that Inflation would change everything, and it did with the help of government involvement to fight inflation!

The Housing market went into recession mode about June 16, 2022 with Interest rates rising quickly, Inventory growing and buyer demand began to wane because affordability was hard to find. Housing was trying to figure out how to handle high prices and higher interest rates. The headwinds came with full force the second half of the year, and the market ended the year with 21% fewer homes Sold, and the Average price for all residential homes for the year was $681,000 which is still remarkably 11.2% higher than the 2021 average. As we balance out the positives with the negatives, 2022 was actually still a decent year for housing!

Now, let’s talk about 2023 as it will be a year full of surprises, with challenges and hurdles to navigate! The good news! At RE/MAX Professionals, we have the experience, wisdom and track record to be successful in this type of market! We have done this market before!

Our Top 10 Predictions for 2023!

1) There is No Housing Bubble: The fundamentals of this market are very different from The Great Recession, and while we expect some year over year price declines in 2023, we don’t believe there will be a systemic drop in home values!

2) Inflation has seen it’s Peak: The rate of personal consumption over the last 2 years is unsustainable given the combination of a low personal saving rate and an elevated ratio of debt-to-personal disposable income among consumers. The worst should be behind us!

3) 2023 Market will be a Mirror Image of 2022: The first half of the year will have the greatest challenges, as prices remain flat or decline. Higher interest rates and affordability may pause affordability for buyers and hesitancy for Sellers to sell with their current lower mortgage rate. The second half of the year may see a substantial increase in activity!

4) Mortgage Rates Will Drop: As economic data is released this year, interest rates will be on a Roller Coaster for a while, but as we enter a mild recession rates will improve. Recessions are almost always good for lower interest rates and affordability. Real Estate is one of the most interest rate sensitive sectors of the Economy.

5) Inventory Will Not Grow Significantly: Demographics of our population entering their prime home buying years will continue to drive demand, and Seller hesitancy to List their homes along with builders under building for almost 15 years will keep Inventory at reasonable levels.

6) No Buyer’s Market, But a More Balanced Market: Historically, we have defined a Buyer’s Market as 6 months of Inventory, but with the lower inventory and buyer demands over the past 10 years, the new definition is closer to 2-3 months of Inventory. The market will be close to that in 2023, and that will create more balance for buyers and sellers.

7) Sellers must become more Realistic: The time of selling a homes As-Is or just throwing a price out there and see what happens are over! Sellers will need to be much more realistic on pricing, and when possible make their homes as presentable and updated as possible. Listings that price correctly, and don’t have to reduce the price are selling in less than half the time of those that do.

New Construction Activity Will Not Increase: Permits for New home construction are down by over 17%, and Builder Sentiment or Confidence is down 54 points. We will see more aggressive pricing and incentives from Builders as they hate to sit on a finished home. May be some great Buyer opportunities, especially the first half of the year!

9) Employment and The Labor Markets Can Change Everything: All of the Recession Flags are up right now signaling a Recession in our future. This may be mild if the growth rate of Inflation falls, but the key data line will be 2023 Jobless Claims. The critical level is over 300,000 on the four week moving average. Expect more layoffs in the coming months, and some iBuyer Companies will close their doors in 2023!

10) Affordability Will Be The Biggest Issue: We will likely see price declines the first half of the year, but this will not be enough to make housing more affordable. If Interest rates remain above 6% in 2023 this will make it challenging for Buyers, especially First Time Buyers as rents will begin to decline as well. We believe interest rates will drop into the mid 5% range, and possibly lower 5% if the recession takes hold and inflation slows down. This would help affordability tremendously, and we will see a mini boom of Buyer Activity the second half of the year!

For more information or to plan your home Sale or Purchase in 2023 call, text or email anytime!