Market Update, May 19, 2022

First, there has been a significant increase in new listings that hit the market this week. This week, there were 25% more new listings than last week. With more homes for sale, buyers have more choices.

The increased number of homes on the market is interesting, but the large number of homes with price reductions is also telling. The number of homes with decreased asking prices roses almost 50%. This shows that the market is shifting. 

No matter what a seller - or a real estate agent - believes a property is worth, the real value is determined by what someone is willing to pay. Unfortunately, the market has determined that many homes are over-priced right now. 

In Westminster, 16% of the homes for sale have been reduced in price. In Highlands Ranch, almost a third of homes for sale - 32% - have been reduced. In Denver, that number is 20%. 

If you're about to sell your home, you'll need to price for the market we're actually in, not the one we were in two or three months ago. Homes have significantly increased in price over the past year. If you've owned your home for a while, you're bound to do well when you sell. On the other hand, if you overprice your home, your home will take longer to sell and will likely sell at a lower price than had you priced it at market value. If you're a buyer, understand that prices continue to increase, and the market still favors sellers.