As The Colorado Real Estate Market Starts to Cool, Buyers and Sellers Get Ready for the Winter Season
The Colorado real estate market is starting to calm going into the fall of 2021. It is still a seller’s market but we aren’t seeing the panic buying from buyers. Colorado no longer has a “selling season” but things always tend to level off in the fall as families work on getting their children back to school. Real estate agents are seeing less multiple offers and not nearly as many offers way over list price. Offers are still coming in over list price but we are only seeing 5 offers over list instead of 10 or 15.
As Colorado Real Estate Market starts to cool, Buyers and Sellers Get Ready for the Winter Season. Colorado no longer has a “selling season” but things always tend to level off in the fall as families work on getting their children back to school. Real estate agents are seeing less multiple offers and not nearly as many offers way over list price. The market was overbuilt before the tariffs and could have gone into a recession had they not come along. People in Colorado are still making more money than they are paying on their mortgage.
What is happening in the Colorado real estate market
The market was overbuilt before the tariffs and could have gone into a recession had they not come along. The tariffs were only recently put into place and have been unable to put a damper on the housing market. We are still in a sellers’ market but it is not the crazy overvalued market of this summer. Home prices still need to be factored in when looking at buying a home. Just looking at this price graph and sales volume it appears like things are slowing down in the last 6 months. The volume of sales is starting to level off, so it looks like the market is having an adjustment period to the tariffs. Renters making more money than home owners For renters, they make more than home owners. People in Colorado are still making more money than they are paying on their mortgage.
How the Colorado Real Estate Market has changed
In the last month we have seen homes selling within a day or two and multiple offers being rejected. That has not always been the case, especially with homes in the $700,000 range and higher. Now we are seeing homes in the $500,000 and below list within a day of being listed. Even homes under list price are being sold in under three weeks. Many of the homes that are selling are homes that need updates or even brand new home designs. Also, we are seeing a shift in home buyers. Buyers that were on the fence are starting to take action now. Things are about to change Home sellers are still getting 20% or more above asking price. This is because we are still in a seller’s market, but you can expect homes listed for under $300,000 to be under contract within just a few days or weeks.
Colorado no longer has a “selling season”
More people are putting their houses on the market so the inventory is coming down. This is leading to lower sales numbers but when compared to the spring and summer sales numbers, we are seeing fewer offers. As we get closer to the winter months, things will start to slow down even more. In this coming winter season we will be dealing with more snow and weather that will keep people inside instead of outside. Buyers and Sellers Begin Preparing for Winter Buyers and sellers have started to prepare for the winter. Their homes have been cleaned and checked for any issues that will prevent them from moving forward. Closings will be pushed back into the new year, but buyers and sellers need to prepare now for any challenges they will face as the weather gets colder.
The best time to sell a home
Pending sales – This is your chance to sell to the highest bidder or accept a counter offer and continue negotiating for the seller. The appraiser is usually the one that tells you what a home is worth. If the appraisal is for the house is still considered to be worth the same then you are done. If the appraiser finds the home is worth more money then you still need to negotiate a new deal. If your current home is getting appraised for less than you owe on your mortgage, you have an easy case to make. Get a mortgage rate quote – We often say it’s not the mortgage, it’s the rates. If your current mortgage interest rate is more than you can afford to pay, you need to renegotiate that mortgage. Refinance your home and reduce your interest rate.
The best time to buy a home
I am not a person who believes that it is always the best time to buy a home. However, I do believe that waiting is the worst time to buy a home. At this point in time there are a lot of incentives to buy a home. Homeownership is cheaper now than it has been for the past 20 years. Interest rates are at their lowest point in history. Even if you have a tiny down payment of just 3 percent, you can still buy a home for $250,000 or less. Buyers should be making offers now on properties and not waiting until the winter season. A buyer has no control over the market in the winter but it is a good time to get ahead. If you find a great deal in the fall you can take advantage of this sale before things pick back up in the spring.
Colorado real estate market is starting to calm going into the fall of 2021
Realtors are starting to see things trending. The majority of our real estate agents are reporting that an offer is coming in over asking, usually in the 3 – 5 day range, with the exception of bidding wars. During the summer months, agents were seeing multiple offers up to the 3rd week of the list. This demand was met with a high volume of listings. However, as we start to see the fall months settle down, listing inventory continues to remain high. The demand for inventory is now driving home values and both buyers and sellers are seeing their options.
It’s difficult for buyers to have all the facts and multiple offers while being pressured to act quickly. Sellers are also seeing more offers over asking with 3-4 offers coming in over list price. It’s exciting for buyers to
Real estate agents are seeing less multiple offers
With the market settling down, homes are not selling for offers over list price as frequently anymore. Most buyers will go back to just wanting an offer that is lower than the list price, usually half of what is listed. Even homes that are selling above list price are coming with very low offers. Buyers are getting a little smarter with their pricing and using the opportunity to get a lower price than they would otherwise. Real Estate Agents are seeing smaller multiple offers Multiple offers over list price are on the decline, but they are not gone completely. It has become a much smaller number of offers where buyers are bidding over list price. While some multiple offers will still happen, it is rare.