MyTownCryer

The question above used to be easy. It is much more complex these days. Demographics have changed. Some are becoming buyers later in life, and some are not selling, so they are staying longer. Some are committed to an urban lifestyle, and others a suburban lifestyle.

I have examined this question from all sides. Here’s what I’ve learned. Neighborhoods with a “draw” handle the swings in market conditions better than others. A draw can be anything from a coffee shop to a neighborhood pool, but the strongest communities tend to have a positive layering effect.

For example, a suburban community with a neighborhood elementary school, open space, pools, tennis courts, trails, and a well-administered HOA can survive just about any market conditions. In most scenarios, it does better than communities without these features.

On the other hand, an urban neighborhood might thrive under a completely different set of characteristics. It still needs that “draw”, but the draw might be walkability to shops, restaurants, and gathering places, if you will. In some cases, the draw might be somewhat esoteric. A nice library, unique recreational amenities like a dog park, or even a park with all sorts of outlets.

Either way, neighborhoods are defined by their residents. Like we always say, “Find your neighborhood, and then find your house. You can’t fix your community, but you can fix your house.”

We are still experiencing a market where the best and brightest move to the front of the line and become closed transactions. A seller can no longer put their home on the market with deficiencies. Buyers are critical of deferred maintenance, site characteristics, and appeal factors. These are some of the price reductions.

Now lets look at the broader market of Active Single Family Listings.

With 5,951 Active Listings right now, this is about 1,100 listings ahead of last year at the same time. This is still a nominal increase, and it will not plunge the Denver Market into the abyss. This market would enjoy a slight decrease in 30-year interest rates. Inventory would fall, and the completion would return.

Today’s wisdom: If you are a buyer, you must be vigilant, eyes open, and ears to the ground. You must have all your pre-buyer steps completed. You must be ready to give up a weekend mountain trip to the homebuyer process.

If you are a seller, get your house in order. Take it one step at a time, and complete everything on your list. Come to the market “Parade Ready”. Don’t give a buyer a reason to walk on by. Be the “A” student in the front row with no flaws.

We can help you every step of the way; thecryerteam@kentwood.com

This will be our last post of #2024. It has been a great year for us. We were blessed with Louie James Cryer in October. #5 Grandchild, it never gets old. Two sixes, two threes, and now a less than one. This will make it a very special Christmas when we get together.

As for 2024, we had many headwinds. We had higher rates than buyers like. We had the election. We had wars, we had urban crisis, and we had slowing job growth along the front-range. In spite of the headwinds, we had a listing over $3M and a buyer over $3M. On the other end, we had a buyer at $425K in new construction. Finally, we had a seller of a one bedroom condo at $240K. So, we covered the gambit this year, and a fine year it was.

What happened this week in our MLS report? Let’s take a look.

Overall, this is not a bad week. 2025 has some momentum based on this. Of course, we have to wait and see, but it will not be long now. In just a few weeks, we will understand how things will be going for 2025.

Let’s delve right into how Active Listings look for year-end.

The graph’s rounding of total active listings is clear and as predicted a few months ago. Today, we are reporting just 7,353 total active listings. We haven’t seen a number this low since April 2024.

My prediction is well supported. We will have more buyers than sellers during the first quarter of 2025. Rates will keep the market calm as we settle into a new President. My guess on rates will keep them above 5.5% for the duration of 2025, but over 6% is more likely.

In the meantime, Dee is already building the 2025 pipeline of buyers and sellers. If you are looking for something special, she may already have it waiting for you!

Contact TheCryerTeam@Kentwood.com

May God bless you and your family in the coming year, and may Santa deliver on that special wish, Merry Christmas…tc

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