April historically ushers in the ‘spring market’, when there are more homes listed for sale than any other time of the year. (In May of 2020, there were 5,390 new listings compared to 2,144 in December 2020 in the Denver Metro Area). With warmer weather arriving, this is typically when real estate is the most active – people are able to take advantage of getting outside, shopping for homes, and settle into a new home before school starts again.
However, if we take a look at the market data, it appears that this spring may be very different than what we’re accustomed to seeing historically. Rather than a surge of new listings, we’re faced with quite the opposite - extremely low inventory. At the same time, we are seeing a continued level of very high demand, which has resulted in an unprecedented seller’s market.
On top of that, interest rates have begun to tick back up, adding a degree of urgency for buyers to lock in their new homes. All these factors have created an environment where homes are selling extraordinarily fast, and prices continue to rise, as people are willing to pay more to get the home they want.
As the Market Changes, Buyers and Sellers Need New Solutions
For sellers, low inventory means that they can win big - selling their home for a much higher amount than even just a year or two ago. And on the other hand, low interest rates mean this is a great time to buy. However, many buyers are becoming discouraged as bidding wars make it difficult to compete. And for those wanting to sell and move up into a new home, there’s concern that they may not find what they’re looking for given such low inventory.
The need for new solutions is clear
At 8z, we have modern solutions like 8z Select to help you navigate our market dynamics. With Select, clients have the ability to choose the best option for them, making the selling process much easier and less stressful. In particular, 8z Bridge allows you to buy before you sell - allowing you to go out and enjoy shopping for a new home with cash. With a cash offer, you can stand out amongst the competition and lock in the home of your dreams. Then once you’re moved in, you can properly prepare your current home to sell on the open market for top dollar - a true win-win!
8z Clients Win
An 8z agent recently had clients that were ready to sell but had a ton of anxiety about finding a replacement home and being able to compete. After learning about 8z Bridge, they went from being a contingent buyer to a cash offer buyer, and were under contract on the perfect home - at $5,000 lower than the highest offer. After moving into their new home, they were able to merchandise and sell their old one on the open market, where they sold for $91,000 over their list price!
As you can see, a challenging market doesn’t mean you have to settle for less. As your local real estate expert, it brings me great confidence knowing I can provide my clients with the most modern solutions to overcome these current challenges. If you or someone you know is feeling stuck, please reach out to me; we can go over all your options, and ensure you choose a modern solution that’s right for you.
