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