This past week I’ve had some interesting stories fill my ears. If you read this blog you know two days ago I had clients lose a house twice to competing offers. Now today another home sought by an investor/broker in my office we find out has 12, yes that is TWELVE offers on the table!
Oh my! Spring is not even here yet and the contracts are being written. Investors and other savvy home buyers are in the market, buying.
Years ago in the 1980′s we went through some hard times. Inventory soared and home builders either went bankrupt or picked up stakes and moved elsewhere (Las Vegas). At the time I was lucky working with several REO managers who kept me very busy.
One day I broke down over frustration with the market, I like the rest of the population was scared. It seemed all we did was lower prices again and again. We sold homes but not nearly at the pace we wanted to do so. One wise REO manager took the time to explain to me this was a market adjustment. Eventually the prices would become so attractive, the investors couldn’t resist. They would come buy up the properties on the market and the declining tide of market would reverse.
At the time I didn’t believe him. The whole idea that things would improve was very foreign to me. Admittedly he was right. It took a year or so before his words became true, but the market improved.
Living through market changes gives one a better perspective of what can happen and will. Now I wish I would have purchased every property I listed during that down market. Had I done so, I would have been sitting on a warm sunny beach in Hawaii right now drinking Mai Tais!
Fast forward to 2008, the Denver real estate market has a variety of both good and bad deals. We are dealing with consumers who lack confidence in the market due to a lack of understanding. The media continues to report a stream of information that confuses the public. What they aren’t reporting is the fact we are selling houses. We are selling properties at a steady pace and getting stronger.
Denver is countercyclical to the rest of the country. What you read about in California is relative to California, not here!
Yes, we have an onslaught of foreclosures and short sale properties. Many people found themselves over-leveraged with their mortgages with no equity to help sell their homes. The solution for these homeowners was to walk away from the house, leaving the bank/mortgage company to come in and resell the property.
The good news is, their loss could be your gain. Many first time home buyers are discovering the time has come for them to purchase a home. Investors are purchasing as much as they can right now. The market isn’t going to stay like this forever.
As we personally discovered this week, the Denver real estate market is moving forward. We know now the next time we find a home that we love, we need to move quickly to purchase it.
Ponder long and you ponder wrong.
About the Author
Kristal Kraft
Kristal has been helping buyers and sellers in Colorado since 1984. She enjoys sharing her knowledge of the Metro Denver Real Estate market via blogging and in person while driving around the beautiful Rocky Mountain town of Denver! For fun, Kristal enjoys shooting things with a Canon. Visit Denver Photo Blog
Kristal Kraft
One Comment
Kristal:
We are also seeing multiple offers in the San Diego real estate market when properties are aggressively priced. It may be a muddy and bloody bottom, but we welcome it nonetheless.
Love your new WordPress site!
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[...] offer phenomena is also being noted in other decimated real estate markets, including Denver, where outstanding Realtor Kristal Kraft notes the same thing [...]