We've seen a significant shift in the real estate market recently. The Federal Reserve raised rates to address inflation and economic concerns, causing home buyers to reassess their positions. This has led to the question: "Are we in a buyer's market?"
Market types are determined by supply, demand, and time-to-sell. Currently, the market is heading towards balance, falling within the 3-6 months range. Although prices haven't dropped significantly in some areas, early price adjustments suggest changes to come. Buyers now have more options and negotiation power on aspects like price, inspections, appraisals, and contingencies. To counter rate hikes, they're using strategies such as asking sellers to contribute to interest rate reduction and covering closing costs.
For sellers, this shift can be challenging after experiencing substantial equity growth and demand. Buyers, on the other hand, are glad that competing with multiple offers may soon be less common. However, they face challenges with interest rates and payment amounts. Savvy buyers understand rate fluctuations and prefer to secure a home without competition, knowing they can refinance if better rates arise.
Although the Denver real estate market is changing, it remains strong compared to national markets. Each neighborhood and price range has unique trends reflecting diverse buyer and seller strategies. Whether these conditions represent a new normal or a temporary shift until rates stabilize, careful strategy and guidance are crucial.
Feel free to reach out for any assistance or to discuss how these market conditions may impact your situation!