Last week, in part 1 of this series, we talked about 2022 market recap and buyer trends we’ll likely see in 2023. This week, we’ll continue by talking about seller trends and hot topics to keep in mind for this new year. Remember, CHR CEO Matt Hudson estimates a strong year overall for 2023 and says sellers will have a good year, as well as buyers. “Homeowners who want to sell can be much more confident in finding a replacement home and negotiating terms that allow for an easier transition from one home to another, than the last few years,” says Hudson.
Seller Trends and Predictions for 2023
The Denver real-estate market is still fast-moving, but it is more manageable. For example, I’ve recently reported that the average days on market in Denver is about 60. This in comparison to during the pandemic when homes were only on the market for about 20 days, if they lasted that long! This means that if you’re selling a home you have a bit more time to finish the moving process and find your new home if you haven’t already. As we discussed in buyer trends, overall available inventory greatly impacts price. If you’re putting your home on the market this year then be mindful that different times of the year can potentially impact your bottom line. For example, January can see a higher inventory in the Denver market as many people wait until after the first of the year to list their home. However, the housing market is still hot and Denver is a very desirable place to live and own property.
Another hot topic when it comes to seller trends is updating homes before selling. Make no mistake, even in a hot market presentation is still important for the best outcome. True, in the market of a year ago, buyers were so desperate to buy a home that they would ignore a lot but this is not a dynamic that I support or recommend to clients. If you’re curious about some of the best updates home sellers can make, I’m happy to help and offer this article as a start:
Because homes sell so quickly and it is possible to get multiple offers, if you are a seller, be prepared to comb through offers and pick the best one. While multiple offers can ultimately be a good thing, evaluate what each offer means for you and your circumstances. For example, one buyer may offer a price over asking but doesn’t want to take possession right away which could inconvenience your plans. Yet another buyer may offer a price slightly below asking but won’t nickel and dime you over the roof you know will need replacing. It all just depends on what appeals to you, and a good agent can help you figure it out. Don’t just pick the highest offer without looking at the rest of the contingencies. In 2022, seller concessions ended December averaging $5,118 per contract.
Another trend to address is virtual open houses and buying a home without being in it first. For me, I would never allow a buyer to purchase a home without seeing it, no matter how inconvenient it is. Buying a home is a complex emotional time and being in-person gives an experience to let a buyer know if a home is right or not. Home is where our every day begins and ends, it has to be right on all levels and that can only be done in person.
Hot Projects for Homeowners in 2023
If you’re looking at selling a home, or you bought a fixer-upper recently, you’re likely looking at the best upgrades and repairs for your buck. First, if you’re selling, you should consult with your agent before fixing anything. Often, what sellers think is an issue and what buyers think is an issue are two very different things and an agent will be the best judge of this. Usually, unless something is catastrophic then it may be fine to leave it alone and let the new owner change it. For example, a homeowner may be tempted to tear out old flooring and put in new expensive material but sometimes a buyer enjoys coming in and making it their own and may have ripped out the new flooring anyway. The same goes with things like paint, wallpaper and fixtures. Timeless upgrades and repairs that are always good to look at include things like:
- Replacing dirty carpet. Carpet can present a bad first impression and at the very least, it may be good to have it professionally deep cleaned
- Dings, dents and scratches on walls and doors. A hole in the wall will not leave a potential buyer with a good first impression, so that is something to cover quickly before selling.
If you have large issues that go past cosmetic and will likely be expensive, such as the need for a new roof, HVAC system or plumbing then consult with your agent. Depending on your budget, they may suggest to do something like sell at a lower price and let the new owner fix it.
Denver Market Trends for 2023
If 2023 proves to be anything like the last few years, Denver is bound to see another hot housing year, though it may not be as we’ve seen the last few years. While inventory will change throughout the year and prices will fluctuate, it’s unlikely we’ll see pre-pandemic pricing on housing. After all, Denver and the surrounding suburbs are complete with innovative food, technologies and amazing outdoor living, so people will always want to move here. The best way to navigate the housing market is to be in-tune with your budget, get a great and knowledgeable agent who you trust and knows the Denver Metro well and understands that this is a hot housing market and will likely remain as such. The good thing about a hot housing market is that, while it may be a bit of a sticker shock to buy into it, the equity that you can earn from real estate could be life-changing. No matter what, I look forward to serving you and answering your questions in the new year!
What are you most excited for in the new year? Are you in the market to buy or sell your home? Call and text me at (720) 323-4176 or email me at [email protected]