Change is ahead for the real estate market here in Denver: one of the frustrations many buyers have had over the past couple months is lack of inventory, and that is about to increase. If you read my previous blog post from November, I talked about how the holidays bring a decrease of new listings coming on the market and the advantages to buying and selling during that time. Buyers and sellers both have a little less competition (buyers vs buyers and sellers vs sellers). Now that the holidays are over, our bellies are full and work life back in full swing, home owners and buyers are ready to move forward with their new plans for 2016.
Here is a graph of the number of new listings coming on the market for the past 5 years. As you can see, the ramp up starts in January and continues strong through the summer before it fades again before school is back in session. What does this mean for you?
For sellers, homes that are listed before March/April will not be competing with the flood of other homes coming on line in the following months. If priced right, they will go like hot cakes. In addition to the flux of people who decided earlier this month that 2016 is their year to buy, there is a large pool of buyers who could not find anything that fit their needs in the low inventory months who are just lingering around, waiting to pounce on that new listing!
If you are a buyer and did not go under contract over the holidays, buckle your boot straps because we are going to start seeing more homes come on the market. There is not a graph that shows the number of buyers in the market, but it has the general shape of the graph above, but the “wave” would be flatter. If you have the ability, try not to compete in the summer months because along with increased inventory comes increased buyers and when that dream home pops on the market that you (and everybody else) wants, it will have even more competition than before.
For buyers who have not yet started the process, there is still time to beat the crowd. Contact me or see our vendors list, we can get you in touch with our preferred lenders who can get you pre-qualified and get the ball rolling.
If you have any interest in learning more about the real estate market or in search of guidance, email me or give me a call. I would be glad to do a free buyer/seller consultation at no cost or obligation to you: to be educated is to be prepared and informed.