Understanding the Seasonal Shifts in Real Estate
In Denver, we typically see an increase in both prices and inventory in the first half of the year. This means that homes are more likely to sell at a higher price during this peak period. Once we hit July, however, the market begins to slow down. Buyers, often distracted by vacations, family time, and summer activities, typically take a break from house hunting. As a result, inventory tends to fall, and sales prices may soften slightly.
What Does This Mean for You?
If you’re considering selling your home this year, timing is crucial. Spring has traditionally been considered the best time to sell, as the weather improves and buyers are more eager to make a move. If your home is ready—or can be quickly prepared—it’s recommended to list your home by the last full week of June. This ensures you are still within the peak selling period, when demand is high, and you can take advantage of the better prices that are usually available before the summer months.
For buyers, the summer months can often offer a bit more flexibility, as fewer homes are on the market, leading to less competition. It’s a great time to find a home if you’re not in a rush and want to avoid the stress of bidding wars.
The Impact of Seasonal Trends on Sales Prices
Over the past few years, we have seen clear seasonality in the Denver real estate market. Prices tend to rise from January through the end of June, reaching their peak during the Peak Home Selling Season. After this period, there’s typically a softening, as fewer homes are sold and buyers shift their attention elsewhere.
Looking at 2023-2024 market trends, we can expect this pattern to hold true. Buyers who act quickly in the next few weeks will have more homes to choose from and will likely experience less competition. However, once July rolls around, the market often slows down, making it more challenging to achieve top dollar for your home.
A Close Look at Market Trends:
- January to June: Higher prices, more inventory, and increased buyer competition. The peak selling season.
- July to September: The market slows slightly as people shift focus to summer activities. Sales prices soften.
- October to November: The market starts to cool as the holidays approach, and there’s typically less buyer demand.
- December: One of the quietest months for real estate sales, often dominated by sellers who need to move.
Inventory Levels and Their Effect on the Market
As we head into the Peak Home Selling Season, there is one important factor that I am closely monitoring—inventory levels. Over the past few months, the market has seen more homes coming onto the market, which is a positive sign for buyers who are looking for more options.
For sellers, this increase in inventory means that competition is also rising. While we’re still far from being in a buyer’s market, homes that are outdated or in need of significant repairs may take longer to sell unless priced competitively. Buyers, especially in the current market with increased interest rates, are becoming more discerning, and many are reluctant to take on properties that require substantial updates or additional investment.
In particular, homes that might be a little dated or in need of renovation should be priced conservatively to attract potential buyers. Many buyers are already facing tough financial decisions due to current market conditions, and they may not have funds left to cover costly upgrades. If your home has some dated aspects, let’s discuss affordable updates that can increase the sales price and make your home more appealing to buyers.
The Benefits of Preparing Your Home for Sale
As we head into the Peak Home Selling Season, it’s important to make sure your home is ready to hit the market. Homes that are well-maintained and show well tend to sell faster and for a higher price. Consider tackling a few simple updates that can make a big difference in buyer perception.
High ROI Updates to Consider:
- Fresh Paint: A coat of neutral paint can completely refresh a room and make it feel modern and clean.
- Kitchen and Bathroom Updates: If your kitchen or bathroom feels outdated, consider updating fixtures, hardware, or even countertops. These updates can go a long way in making your home more attractive to potential buyers.
- Landscaping: First impressions matter. Ensuring that your yard is well-maintained with fresh mulch, trimmed bushes, and a well-kept lawn can make a significant difference.
- Decluttering and Staging: The goal is to create a space that allows buyers to envision themselves living in your home. Decluttering and professional staging can help achieve this.
With my team of trusted contractors and home staging professionals, I can help guide you through the process of preparing your home for sale. Whether it’s making a few updates or offering suggestions on how to improve your home’s presentation, I’m here to help you achieve the best possible results.
Example: Capitol Hill Stunner Listed By Dempsey Group
Take a look at one of the listings I’m currently working on: 1439 Emerson Street, Denver, CO. This home has been a solid rental for many years and is now waiting for its next homeowner to put the ir personal cosmetic touches on it. It has already undergone essential upgrades like a new furnace, water heater, sewer line, and modern electrical panel. This home is a great example of how high-ROI updates can add significant value, especially in Denver’s competitive market. The open house on Saturday, May 17 is the perfect opportunity to check out this gem and get inspired by its potential.
Frequently Asked Questions
- When is the best time to sell my home in Denver?
The best time to sell your home in Denver is typically in spring through the end of June. This is when inventory is high, and buyers are most active. After that, the market usually slows down a bit, and prices may soften. - How can I make sure my home stands out in a competitive market?
Making a few key updates to your home, such as fresh paint, updated kitchen or bathroom fixtures, and improved landscaping, can help it stand out. Also, staging your home can make a big difference in how potential buyers perceive it. - How do I price my home to sell?
Pricing your home correctly is crucial. I recommend looking at comparable homes in your area, understanding current market trends, and working with an experienced agent who can guide you in setting the right price to maximize your sale. - How long does it take to sell a home in Denver?
Homes in Denver typically sell faster during the Peak Home Selling Season, often within 17 days, compared to the average market time of 35 days. However, the timeline can vary depending on the condition of the home, price, and market conditions. - Should I sell now or wait until later?
If maximizing your sale price is important, selling before the market cools off in July is a great strategy. After July, the market tends to slow down, and there may be fewer buyers actively looking.
The Best Time to Sell Your Home
If you’re ready to sell, the next six weeks are crucial. Getting your home on the market sooner rather than later could make a significant difference in the outcome of your sale. Buyers are actively looking, and the market is still hot for well-maintained homes. However, once we hit July, there’s usually a slight slowdown, and your chances of maximizing your sale price may diminish.
I’ve been fortunate to help many sellers successfully sell quickly and for top dollar already this year. If you’re considering listing your home, now is the time to take action. Whether you’re selling in the next few weeks or planning ahead for the fall market, contact us and we at the Dempsey Group can help you devise the best strategy to meet your goals.
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