Market Update: What To Expect In The Holiday Season
After years of a seller’s market in this area, Denver / Boulder real estate trends going into the holiday season are favoring buyers. Now may be the time for you to start your home search! In general, the holiday season is a slower time of year. Below are some things to consider if you are thinking about purchasing a home between now and the New Year.
Seasonal Slowdown: The real estate market tends to slow down during the holiday season, specifically in November and December. Many people are focused on holiday celebrations, travel, and family, which may lead to fewer property transactions.
Less Inventory: Sellers may be hesitant to list their properties during the holiday season, resulting in reduced housing inventory. However, this can create opportunities for serious buyers, as there may be less competition for the available homes. Historically, there has been less than __ month’s supply of inventory in this area. At the moment, the supply of inventory is sitting at 2.1 months. When this number is below one month of inventory it signals a seller’s market, as multiple offers are more likely since there are more buyers in the market than homes to sell. The current trend presents buyers with an excellent opportunity to negotiate transactions heading into the holiday season.
Motivated Sellers / Lower Prices: Some sellers who have their homes on the market during this time may be more motivated to sell, which could lead to better negotiation opportunities for buyers. The rate of price reductions in our market has increased to 49.6% of properties going under contract after having to make a price reduction. This further contributes to a buyer’s market, as it allows buyers more leverage to negotiate seller concessions for inspection items, interest rate buydowns, and closing costs.
Interest Rates: Mortgage interest rates have had a significant impact on the real estate market. However, interest rate buydowns are available, and may provide a good opportunity for buyers now with less competition due to fewer buyers in the market for a new home.
Investor Activity: Real estate investors may see opportunities during the holiday season, looking to purchase properties at potentially lower prices or from motivated sellers.
New Year’s Resolutions: Some people may decide to make a move in the New Year, so you might see an uptick in real estate activity in January with more competition for buyers.
Remember, real estate market trends can vary widely, and it’s essential to consult with local real estate professionals who have access to the most up-to-date market data and can provide insights specific to your area. Additionally, market trends are subject to change due to unforeseen events or shifts in the economy, so it's always a good idea to stay informed through reputable sources when making real estate decisions.