“A ship in harbor is safe — but that is not what ships are built for.” — John A. Shedd
Is this a metaphor for #Homeownership? Let’s see. A participant in this residential market is completely safe staying put. The participant’s goal, however is to move. They want to move up, price or size down, move for employment or family or lifestyle, etc. So, unless the participant leaves the #safeharbor, their goal remains unrealized. Right now, the fear in our market has been magnified by all the things that can go wrong. The truth of the market is simple, and it’s always been this way, “Buyers want to buy, and Sellers want to sell”. As a broker participant in the marketplace, it’s our job to keep the problems at bay.
Over the last couple of weeks, I’ve been observing a change in trend. Let’s see here what this week has for us in the Denver MLS System over the last 7 days.
|New Listing (1500) This is the trend we’ve been seeking. Over 1,500 in a single week; Brilliant!|
|Coming Soon (115) This number, however, is well below recent weeks! Does this trend have legs?|
|Back On Market (245)|
|Price Increase (290)|
|Price Decrease (565) Pay attention here… Sellers are coming out too strong with their list price, and this is a huge number adjusting to the real market!|
|Pending (1956) Once again, Buyers are finding their way. This is a huge number!|
|Closed (1736) This is a very strong number. This market has not cooled one bit!|
So, I’ve been doing my research on this market week in and week out. We wrote about the demographic shift happening last week. Long story short, Boomers are aging in place longer than previous generations and Millenials are reaching their “Home Buying” age in greater numbers all at the same time. This coupled with the normal pressures of market participants and a shortage has resulted. What’s a broker to do? Don’t shoot the messenger, but this phenomenon could continue into 2030 according to some of the number crunchers. Now, interest rates and employment prospects always play a key role in the demand for homeownership, and only time will tell.
I talked about the potential for a more buyer friendly market as we roll into the second half of 2021, and now for the last 3 months, there is some indication the Single Family Detached Residential Market in the 11 counties included in the Greater Denver Metropolitan Area is providing some proof to this Hypothesis. It is important to look closely at the weekly numbers, but it is necessary to look at the broader picture over a wider time frame to see clearly. I hope this rings true to your thoughts.
I’d love to hear your comments. Please do not hesitate to call…tc