Good Morning Everyone,
Sometimes, I sit down to pen this blog, and I haven’t given it a single thought all week. As I’m always thinking, I cannot tell a lie! I’ve thought about this more than enough over the last 7 days. The events of the last 7 days have been transformative.
Banks Failing will create a ruckus in Washington, and in the name of protecting US, there will be changes. They will be slight, but there will be changes. Wall Street continues its upward trend, and life goes on. The coverage of this/these event(s) by our “journalists” will all boil down to He Said, She Said. We will be confused. Overall, however, it is a good life!
Over last 7 days in Denver have looked like this.
|New Listing (937) Not showing a growth in supply for the spring market.|
|Coming Soon (199) Some help here, but not enough!|
|Back On Market (206) It’s still looking like 20% of deals are falling and coming back.|
|Price Increase (137)|
|Price Decrease (666) This is still surprising me. I would expected Sellers and Brokers to have a better handle on appropriate pricing by now.|
|Pending (1300) Strong number here. Where are buyers finding these properties to buy.|
|Closed (893) This is not an exciting number!|
How does the inventory look over the last 10 years?
Over the last 5 years, it shows how 2022 and 2021 were simply anomalies of super low inventory. In 2019 at this time of year, there were 4,674 Active Listings, in 2020 there were 5,232, in 2021 there were only 2,398, but then 2022 caused a Buyer Rush with only 1,929 until rates jumped into this market in June of 2022.
What does all this mean. 2023 Is starting out with not enough inventory for buyers, but Interest Rates have taken some buyers out of the market or lowered their qualified price. Anecdotally, we are seeing our buyers having to compete with other buyers on almost every contract we submit.
Being the buyer with Full Credit Approval, Funds in Place and Reasonable Expectations can still put you in the Front Row. Don’t cut corners. Be the buyer that’s the A Student in the Front Row!
I thought this was important to share. This was given to me many years ago, and it just keeps coming back, over and over, and over again. Keeping up with the market psychology is something we should all be doing.
My guess right now is clearly past Euphoria. After that, I’ve seen almost every emotion on the downward curve for both buyers and sellers. With such a bifurcated market, Not Buyers’ and Not Sellers’, this market has a way to go before it can filter out some of the cloudiness. If I was to guess, we will see relief sooner rather than later…
As always, we are in the market everyday. We see the successes, we see the failures, we know what wins for buyers, and we know what a seller needs to do to get top dollar. Pick of the phone and call. We will be there for you every step of the way….tc
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