Denver's 2024 Housing Market: A Surge in Listings Signals Opportunities and Challenges

The Denver Metro housing market is showing signs of an early and active spring, with a notable 30% increase in new listings even before the season has officially begun. This surge presents unique opportunities and challenges for both buyers and sellers. In this guide, we'll explore tailored strategies to help both parties succeed in the dynamic 2024 real estate landscape.

The Current Market Landscape

The early months of 2024 brought a welcome increase in housing inventory, with February seeing a 30% jump in new listings compared to January, and a 22% rise from the same time last year. This growth in inventory is essential for sellers and buyers to understand as it indicates a competitive market, necessitating strategic moves to stand out and secure the best offers and deals.

Interest Rates: The Market's Pulse

One of the most telling indicators of the housing market's activity is typically interest rates. As of early 2024, rates for a 30-year mortgage is stubbornly sitting around 7%. While this is not unprecedented historically, it's a significant increase from the past two decades, impacting affordability and slowing down the market in 2023.

However, the tides are changing in 2024. Both buyers and sellers, tired of waiting on the sidelines, are leaping into action despite the higher rates, evident by the big jump in activity ahead of the spring market.

Sellers Have Activated

This influx of inventory is a boon for buyers but also signals a competitive market for sellers. Homeowner’s equity held up beautifully over the slow 2023 as demand continues to outpace supply in Colorado so there's lots of opportunity when selling. But it’s no longer a free-for all. If sellers want top dollar and attract the most amount of buyers, they need to put in some work up front and price their property strategically.

Success in this market hinges on presenting your home in its best light. Pricing will be the biggest driver with the best offers and even bidding wars coming on homes that are priced at market value or even slightly under. Beyond pricing, sellers who put in work preparing their home drive the most buyer traffic. Here are key steps to ensure your property captures buyer interest:

• System Maintenance: Confirm that major systems like heating and plumbing are not just functional but certified by professionals. Documentation of these checks can be a strong selling point.
• Minor Repairs: Attend to the small details that can detract from your home's appeal. This includes fixing leaky faucets, securing loose door knobs, and replacing burnt-out bulbs.
• Aesthetic Enhancements: A fresh coat of neutral paint and new carpeting can transform your space, making it more inviting and potentially increasing its value.
• Fixture Updates: Modernizing fixtures such as lighting, faucets, and door handles can significantly refresh your home's overall look at a minimal cost.
• Declutter and Clean: A clutter-free and immaculate home is more attractive to buyers. Consider renting storage space for personal items during showings to present a tidy, spacious environment.

Finally, in today's market, a simple listing is not enough. Employing a comprehensive marketing approach can dramatically increase your home's visibility. Top Producing Realtor, Ryan Haarer, with LIV Sotheby’s International Realty, utilizes the following as a base marketing plan:

• Hire best in market photographers to make your home listing stand out
• Utilize those photos on thousands of home search websites and professionally designed brochures and mailing campaigns
• Shoot high-quality video tours to reach thousands of additional views on all social media platforms
• Run two weeks of social media advertising to spread the word
• Add 3D walkthroughs and floorpans to the listings
• Create a custom website to share all marketing assets in one beautiful place social media campaigns,
• Open Houses have been BUZZING in the first part of the year, helping spread the word about your home

For Buyers: Securing Your Ideal Home

The Expanding Inventory

More sellers entering the market means more choices for you. However, it also means increased competition, especially for turn-key, well-priced homes. Here's how to navigate the buying process:

• Prepare and Plan: Before house hunting, define your must-haves and deal-breakers. Consider a strategy session with your realtor to outline your ideal offer.
• Smart Offer Strategies: In competitive situations, tailor your offer to stand out. This might include minimal inspection requests or offering appraisal gap coverage to appeal to the seller.
• Leverage Overlooked Listings: Homes that have been on the market for a while can provide negotiating leverage. Discuss options like interest rate buy-downs with your realtor to make these listings work in your favor.

Looking Ahead: Interest Rates and Market Trends

While Realtors don’t have a crystal ball, interest rates are predicted to tick down by industry analysts later this year. When they do, even more buyers will enter the market. And more sellers will feel comfortable listing their homes to go find something more suitable. But the dynamics will remain for some time: sellers who put in the work up front will reap the benefits, and buyers will either face stiff competition for top tier homes or find deals in seller’s mistakes.