The Denver real estate market is in a strange position. Not crashing (despite popular opinion), not booming - it's really just...stuck.
We feel it. Everyone feels it.
Buyers are waiting for prices to drop. Sellers are hoping for 2022 prices. Agents are exhausted trying to explain why nothing's moving. And there are a lot of homes sitting.
The average days on market number is a total illusion right now. Why? Because it only tracks homes that have actually sold. The ones that hit the market months ago and are still just...sitting. Those homes are not even included in that stat.
So when you hear "homes are selling in 25 days," it's not the full story. Of course, some are - many are not. The DOM only counts homes that sold. Meanwhile, a bunch of others are aging like a fine wine in the MLS. We won't get a truer picture of how long homes are actually sitting until those finally close and bump that stat up to reality. Bottom line: DOM looks prettier than reality, so don't let it fool you.
A lot of what we are seeing here is the result of a perfect storm:
~A huge surge in new agents during the COVID boom (many of whom never learned how to actually sell in a balanced market)
~A ton of experienced agents retiring post-boom
~Low-interest-rate homeowners feeling stuck and possibly, in some instances, upside down
~ Developers building multi-family units nobody wants anymore
~ Buyers getting pickier, savvier, and more skeptical
Soooo here we are. We have higher inventory, longer days on market, price reductions, and a giant game of chicken between buyers and sellers.
The good news is there is opportunity here - if you know how to play the market.
~Buyers - You finally have leverage. Negotiate! Ask for concessions. Consider rate buydowns. Don't try to time the exact bottom. Rather, look for the right fit.
~Sellers - I hate to tell you, but this isn't 2022 and things have drastically changed. Price it right. Offer incentives. Make your home shine from the day it hits the market. Be patient, but proactive.
~Investors - This is your market. Condos, stale listings, multi-family - if you do your homework, you can find gold.
~Agents - This is where real skill matters. Focus on strategy. The agents who stick with it, adapt, and provide actual strategy are the ones who are going to thrive. Everyone else will fade out.
If you want the full breakdown - including which neighborhoods are moving and which ones are stuck, and what to watch for next - let me know. I'm happy to send you the deep-dive I spent way too much time putting together.
And if you're thinking about buying, selling, or investing and want to talk about how to win in this market, hit me up. Brad and I will always tell you the truth - even if it's not what you want to hear and won't help us pay our bills.
This market isn't dead. It's simply different. You CAN still win - you just need a new strategy, the right team, and a little patience.
