“Where, oh where, have the homes for sale gone?!”
That’s right – it’s more of the same. From November last year compared to November 2021 this year, we are STILL showing a Denver housing shortage – down 34.2% in inventory, despite a 15.5% increase in sales price over the same period!
Where are the Sellers
Why aren’t people placing their home on the market when they can make out like a bandit? The absolute largest consideration for homeowners: They’re scared they won’t find a replacement home given the Denver housing shortage. With interest rates now slowly but steadily rising, slowly properties will become less affordable. Many homeowners have decided to keep themselves out of the selling market & decided to stay put. Instead, they either remodel their existing home, finish their basement, add on or pop the top. As you can see, this is a downward spiral into lower and lower inventories. Potential sellers just don’t want to take their chances.
What will break the cycle
Nobody knows for sure what will finally break the cycle. Interest rates are rising. If they get too high, potential buyers will lose their ability to afford the prices. This could squash demand as buyers will rent instead of buying. This may FINALLY break the hold on the housing shortage.
We need more – a LOT more Sellers
In order to truly change the market momentum, we need more sellers. However, it will take a LOT of sellers to make this thing work. Why? ‘Shadow’ buyers have been living with friends, family, or renting. They are waiting it out for the right home to pop up. Or, they are saving money for a down payment on a home. So even if we have Sellers come out of the woods to sell their homes, so will more Buyers come out to snatch them up. It’s a vicious cycle right now.
Dig in for a long Seller’s Market Cycle
Be prepared for this long seller’s market and the house shortage to continue for the foreseeable future. What does this mean for you? Talk to a professional. Let us help guide and navigate you through this process! It’s not impossible – you just need a Market Expert to help. Here at CJV, we can help you make the right decision for you and your family!