This past weekend I worked with 4 separate buyers. Sounds exhausting? Well it was, but not how you would think.
Typically when working with a buyer you set appointments, probably 5-7 on homes that might fit their budget and other criteria. Well those days are past. Now we are lucky to see that many homes in one outing. The most homes I showed to one buyer this weekend was 4! That's because that's all there were!
Buyers are Soaking up the Housing Inventory!
What's happening in the Denver market? We have a shortage in inventory and an abundance of buyers. Our inventory is getting soaked up by anxious buyers wanting to become home owners before the interest rates go up.
Take a look at the 7-day stats for these Metro Denver Counties, look at the number of listings taken vs. the number of Under Contract. That should explain why finding homes to look at is so difficult right now.
Sales Activity in Metro Denver Counties over the last 7-Days
What Does This Mean for Buyers?
If you are in the market to purchase a home, you will need to be ready. Many homes are receiving multiple bids that means buyers who are qualified to buy and can prove it will win the bid. Bidding wars can be brutal but have become a fact of life in the Denver real estate market, so be ready to bid over list price. If you are a buyer who has a contingency ( a house to sell) sell your home and remove that contingency. The reality is, the home owner is going to pick the BEST bidder from all the offers. The best may or may not be the highest net to them. Sellers want to be assured their home will sell, so they look at many factors, including the buyer's ability to sell, contingencies and net proceeds.
What Does This Mean for Sellers?
After many years of getting beaten up sellers are finally in the driver's seat when it comes to negotiation. Sellers are enjoying the luxury of very few days on market, multiple offers, over list price offers and quick closings.
Still sellers need to beware that many buyers will over bid your home knowing it won't appraise. If the buyer doesn't have the means to pay the difference you won't be enjoying that extra cash from the sale of your home. If this is the case be sure your buyer has the ability and is WILLING to pay the difference. If they aren't able and not willing their offer is just a cloud of wishful dust. All you will have to show from this contract is wasted time!
What Does the Future Hold?
At this rate I am wondering if in April we will reach a point where there are ZERO listings to sell? Is it possible? I certainly hope not.
What do you think? Will we run out of properties to sell or will sellers decide to get into the market?
By the way out of my 4 buyers I found homes and went under contract for two of them. The other two are still in the market. We will continue our search!