In early May, the Federal Reserve began increasing interest rates in an effort to slow down inflation. Although it’s not meant to stop the market, it’s meant to cool down a red hot seller’s market. As we approach the summer months, you may wonder what real estate will look like in Denver. In real estate, seasonality tends to impact inventory and purchase price. It’s tough to compare this market to any years prior, but we have some insight on what you can expect in Denver real estate for the next few months.
Seasonality in Real Estate
During spring, inventory is usually plentiful – however we know that hasn’t been the case in 2022. Denver inventory is still down 48 percent compared to the amount of inventory in May of 2021. Despite low inventory, homes are moving fast. In April, the typical home in Denver was pending in just five days of hitting the market.
Home prices are usually lower during winter, but inventory is also usually limited. People find moving in the winter more challenging, especially for families. Early summer is viewed as the peak season for real estate for sellers. At the end of summer, buyers can typically find some good deals.
Hope for the Buyers
The market tends to slow down as we get closer to August. People want to move before a new school year starts, therefore prices are often slashed towards the end of August. The market is forecasted to begin changing soon, but an exact timeline isn’t available yet. Some analysts expect homes nationally to drop as much as 25 percent by the end of summer.
Denver's Market Predictions
More sellers are expected to list their properties due to the increased interest rates and desire to sell while the market is hot and before prices fall. Predictions are that homes will eventually spend more time on the market, which tends to impact the price. The longer a home is, the greater your negotiating power as a buyer. With more inventory comes more options and less competition amongst buyers. When that happens, we likely won’t see the bidding wars we have seen with homes selling for tens of thousands over the list price. However, keep in mind that sale prices are very dependent on the inventory, which is still currently low. Denver currently has about 3.6 weeks worth of inventory, which means it’s still very competitive. Many people are still flocking to Denver from other states, only adding to demand.
Boosting Your Chances
Although we do expect the market conditions to improve for buyers, you still want to do your best to ensure you’re a strong candidate. If you have to sell your home to buy another, now is the perfect time. There’s a great chance you can coordinate the sale of your home with the purchase of another.
If you are considering buying Denver real estate, summer is a great time to buy. We are real estate experts and advisors and can explore all your options together. Now really is the prime time to buy Denver real estate before another rate hike.
If you’re in the market to purchase in Denver, it is important to act quickly, as the home you see today may not be available the next. One way to increase your chances of landing the home of your dreams in the neighborhood that complements it is having a good realtor by your side. Our team at Halo Group has helped many buyers like yourself land incredible properties across the Denver metro area. Contact us, and let us help you!