If you bought or sold a home during the height of the pandemic, or even just talked to an agent, then you know that the market was wild. Inventory was low but demand was high. Homes were selling well over asking price and buying became very competitive. Though the pandemic and the Colorado real estate market has cooled off, things are still far from what is known as a neutral market. What does that mean for you? Continue reading the find out what kind of market we are in and how this could inform your buying and selling ambitions in the future.
Defining The Colorado Market
There are three main states that the real estate market can be in: a buyer's market, a seller's market, and a neutral market. A buyer's market is when there are more homes for sale than buyers, giving buyers more power to negotiate prices. A seller's market is the flipside of a buyer's market. There's usually a shortage of homes compared to the number of buyers, increasing prices and competition. A neutral market is when the number of homes on the market and the number of buyers is balanced. In conclusion, a buyer's market favors buyers, a seller's market favors sellers, and in a neutral market things are balanced between buyers and sellers.
So, which of these market states is the Colorado real estate market in? Despite the fact that the market is starting to cool off from pandemic highs, we are still in a seller's market. There is still less inventory of homes than available buyers. Though the market currently favors sellers over buyers, this doesn't necessarily mean you'll get a lot of money over the asking price for your home. This is due to higher mortgage rates. Sellers don't worry—homes priced correctly are still selling very fast. Therefore, if you're ready to sell your home, talk to your agent about the best way to set your asking price to get the best offers you can possible get.