We will have more to discuss below, but the Holiday Season has been and will be in full swing.

We see buyers more critical than ever on condition, appeal, and maintenance issues. As a seller, you can not run with the Three P’s. (Put it in MLS, Put in a sign, Pray) This market is demanding more than I have ever experienced. Buyers have seasoned inspectors, buyers are asking for follow-up reports, and buyers are walking away unless the seller complies. As a seller, you can no longer go, HoHoHo, to the bank. Buyers are finding every hidden defect. Eyes wide open, if you will. Your chimney needs to be as clean as your kitchen floor.

So what’s happening in the Denver Market this week? We are seeing the “layering effect” impact sellers, too. It’s no longer the picky little details from an inspection, it’s the compiling of those issues. Just like a cake, the driveway with the spalling concrete is no big deal, but the layer of old windows, the floor plan, site size, location, and neighborhood feel creates price resistance. Often overlooked initially, after a dozen or more showings, the feedback quickly exposes the layering effect. In my humble opinion, the only way to overcome the Layering Effect is via price. Some layers can’t be change because they are external or non-economic to change. Thus, the List Price is a seller’s only weapon.

The advice here is straightforward. As a buyer, if you are interested in a property, stay with it. The seller, still on the market, is looking for something in writing. If you are a seller, you can’t under-price your property. The market is active enough to bring multiple offers if you are priced at or slightly below market. The rule of thumb for Active Listings is, if you aren’t getting showings, you are 10% too high. If you are getting showings but no offers, you are 5% too high. I can’t tell you how many times this has proved true. So, buyers, keep hunting for that tipping point. Sellers, don’t give up, this is the time of year where you will have the least competition. “Don’t give up”… as Peter Gabriel sings…

Let’s look now to the Total Active Listings.

As posted a couple of months back, I wrote. “Soon, the supply of Active Listings will round off the top of the graph and show a significant decline.” Well, here we are! With just 7,075 Active Listings, we’ve rounded the top with a total active supply lower than May 2024. More support for my hypotheses above. Don’t give up!

As we close out 2024, we plan to continue our posts with relevant stories about the Denver Marketplace. We hope you are interested in what we have to say. Please feel free to put up questions, and we will work to source the answers.

Don’t Hesitate: TheCryerTeam@Kentwood.com