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.