WHAT'S HAPPENING IN THE DENVER REAL ESTATE MARKET

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Hi guys, it's your realtor Milena Joy. And I just wanted to give you a quick update on the state of the real estate market here in Denver, Colorado.

We are seeing a lot of price reductions. We're heading into the fall, and that's pretty typical. The market does tend to slow, however, part of those price reductions can be simply due to sellers overshooting it. We've been in a constant seller’s market and so mentally some sellers are saying, let's see how high we can sell our house for. But that’s always a bad strategy and it ultimately leads to price reductions.

The other thing that we're seeing is that there's an increase in inventory.

An increase in inventory is not really typical in fall, but that increase in inventory could be partly due to sellers overshooting and pricing high, so they're staying on the market longer. We also have a lot of new development in Denver. If you look up in the sky at any time, you're going to see tons of cranes and new buildings and projects going up at a really rapid rate. That also helps push that inventory level.

The other thing we've seen is an increase in interest rates.

The federal reserve has promised to increase the federal reserve rate in December, and then at least another two times in 2019, which ultimately leads to higher interest rates. So what this means for buyers and sellers is that sellers are going to want to really pay attention, making sure they've done all the research, talked to a Realtor® that knows how to market your home correctly, price it correctly, and get your home in front of as many buyers as possible.

The other thing to note is that now is actually the best time to list.

Because what we're going to see with interest rates increasing, if you're in that under a million price point, fewer buyers are going to be able to afford [your home], especially the first-time home buyers, it's really going to affect their buying power.

We still have a really healthy real estate market. It's still a sellers market.

But we're going to see appreciation go from nine and 10 percent to more, five to seven percent. Keep in mind all of that is dictated by the neighborhood you're in, your particular property. There are still properties that are going just like that, as long as they're priced right and marketed well.

If you have any further detailed questions let me know. You can always download the reports on my website at milenajoy.com just click on market reports.

I'm happy to answer your questions anytime, give me a call, follow me on Facebook and Instagram and let me know how I can help.

Thank you for listening, I'm your Realtor Milena Joy, I know changing where you live can change how you live.

2018 Real Estate Market Trends

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Have you heard that sellers are making drastic price reductions in order to get their home to sell in this market? 

Or maybe you've heard that homes are selling in just a few days, often times receiving multiple offers?

So which is it? Is the real estate market hot or not?

Is the real estate market hot or not? Well, believe it or not, both statements are true. Statistical data can be sliced and diced in so many different ways that the information can often seem contradictory and confusing.

For example, even though we've seen an increase in days on market for single family homes and condos, when you look at just single family homes, days on market has actually decreased and we only have five or six weeks of inventory which is why we're seeing multiple offers.

However, in the luxury market, which is one million plus, we've seen record-breaking numbers in sales and days on market has actually decreased. However, there are about eight months of inventory still available which might be some of the price reductions you've seen. Overall inventory in January also hit an all-time record low of just 3,869 total active homes.

In addition, Colorado was ranked the ninth fastest growing state and grew by 77,000 new residents. Now while this may down from the 90,000 that we welcomed in 2016, we still have 167,000 extra people to house in the last two years. Simple laws of supply and demand will tell us that when inventory levels are low and demand is high, home prices will naturally go up.

Here's What You Need to Know Going into Spring

Sellers, if you're looking to sell your home, know that buyers are thirsty for more inventory. But it's still important to have it priced right. No matter how hot the market is, over-pricing your home will be detrimental to maximizing the final sale price. In fact, your home may be even more susceptible to price reductions and stigmatizations in a hot market where buyers are expecting the best homes to go off the market quickly.

It's more important than ever to make sure that no detail is overlooked in listing your home.

Working with a reputable agent that will ensure your home receives maximum exposure, by getting it in front of as many agents and qualified buyers as possible while also ensuring it shows exceptionally well in person, in print, and online, will work to limit the total days on market and command the highest price for your home.

Buyers, don't let the low inventory stop you from finding the home you desire.

Instead, take action now and start your search early. I recommend at least six months from when you need to move. If you plan on getting a loan to purchase your home, you must get pre-approved from a lender.

In this market, a seller will not even look at your offer without a lender letter or a proof of funds. This is the one step in the entire transaction where the seller really holds all of the power, because the seller gets to decide whether or not to accept your offer. And in the case of multiple offers, you want to make sure that you come across as the most prepared, qualified, and desirable buyer that will actually make it to close.

And believe it or not, love letters work.

The key is to be authentic and find ways to relate to the seller. I've even had my buyers include pictures of their family. Who can say no to puppies and babies? Working with a realtor who is not only knowledgeable about the real estate market, but who can be strategic in writing your offer as well as an aggressive negotiator will ensure you get the best terms and price in this competitive market.

So there you have it, we're teed up for an exceptional 2018 in Colorado. If you have any real estate questions or if you or someone you know is considering selling or buying a home this year, give me a call. I'm your realtor, Milena Joy. I know changing where you live, can change how you live.