There is an old expression. “Buyers want last year’s prices, but sellers want next year’s prices.” This is extremely true when the market is rapidly appreciating. Buyers and Sellers always have a choice until they don’t. We believe there is nothing more complicated than the minds of buyers and sellers. They can swing from one “Must Have” to another “Must Have” in a single afternoon of showings. So, let’s not drift…
Let’s jump right into it this morning and take a look at what’s happened last week as presented by the Denver Residential MLS System. We had 1,656 seller’s reduce there list price, with another 228 let their listing expire. That’s almost 1,900 sellers giving into the market to obtain 1,543 under contract listings. When ever we see Under Contracts fall below the other two variables, it gives us pause the consider how the market might be drifting.
New Listing (1425) This is a typical seasonal number.
Back On Market (265)
Price Increase (135)
Price Decrease (1656) In light of the other numbers, this is disconcerting for sellers!
Under Contract (1543) A nice seasonal number.
Sold (1267) Anyway you count them, this is a “low” number. (Let’s talk here.)
So, the long story short this morning is this. Is this market drifting toward a more buyer friendly market? Have sellers seen the last of double digit appreciation and will 1-4% annual appreciation be the norm moving forward? All this seeds are here for this to play out.
By years end, we will learn so much more than we now know. China and the NYSE/NASDAQ, etc. will have played their hands. Interest rates will be a topic of great concern, but for now, rates couldn’t be better for buyers. Well, they could be better, but in a historical context, they are fantastic!
What would we do? (WWWD) We would look to jump in if we were buyers. These rates actually make affordability this year fantastic. If we were sellers, we would pay close attention to the activity on our listing and take our Realtor’s advice on pricing. For a seller, now is not the time to challenge the market. We would advice our seller to price ahead of the market which might actually be a little lower than what you are planning today.
So, as we look back to the top and reread our opening quote, we don’t want you to be that buyer or that seller. We want you to be in the present with a clear view of what’s happened and what could possibly happen. This is why you need a plan. A clear and open plan with all parties involved. Let’s spend an hour together and work on that plan. The choice is yours.
Dee and Tom Cryer, 303-773-3399 or TheCryerTeam@Kentwood.com