July 19, 2019 at 5:21pm | Bob Bandy
Denver Real Estate News - July 2019


Brought to you by
Marianne Bandy  |  eXp Realty
303-746-7799  |  marianne.bandy@exprealty.com

Denver Real Estate: Are Sellers Facing Trouble in Denver?


As Denver real estate continues to hum along, changes in the market are becoming more obvious. After several years of a red hot seller’s market, the climate has shifted towards a more stabilized, buyer friendly playing field. This isn’t to say buyers are firmly in the driver's seat, but they at least have more choices and a little more leverage.

The great housing bubble and predicted burst never came to fruition. And rightly so. The elements were never fully there to bring the housing market to its knees. Multiple years of low inventory and high demand kept prices up and sellers in control. Yet there’s a new rumor being bantered around; one of a looming recession. Time for a Break?

The national economy is booming with record low unemployment and rising stock prices. Locally the news is equally as good. Wages are up, interest rates are down and housing prices continue to rise, albeit at a slower pace. With all of the good news, it’s difficult to imagine a recession. However, it is a cyclical event, just like the transition from a seller’s market to a buyer’s market. The shift is inevitable.

We can see this in the Fed’s management of interest rates. They are paying close attention to inflation. In fact, the expectation is to see rates cut again in July.

A New Concern: iBuyers
Although sellers may lose some traction and control in the shifting market, a new concern for some will be the introduction of iBuyers. Zillow, Open Door and Offer Pad, known as “iBuyers” are the highly funded, big players in this new online realestate platform. The marketing message promotes cost savings through the convenience of going online to sell your home. But the reality in some cases is proving to be far different than the hype.

Meet the New Investor
The iBuyers are typically investors working for a profit, not fiduciaries working for the homeowner. While a Colorado real estate agent has a fiduciary duty to their client, the obligation of the iBuyer to the client is perhaps fuzzy at best. Examples of the misdeeds by iBuyers are surfacing at a faster pace, making sellers more attuned to the real cost of online sales.

The Real Deal with Sellers
The market has shifted and continues to do so, taking some of the long held control from the seller. Homes may sit on the market longer in 2019, but we remain in a seller’s market. In the right price range and location, homes continue to sell quickly. Sellers should be cognizant of a potential recession, but not panic. Homes still sell in a recessionary period. The bigger concern for some sellers is to be financially exploited through the new iBuyer platform. Although the percentage of homes sold through iBuyers is low today, the movement is gaining momentum. If you have questions about how iBuyers may effect the sale of your house, feel free to give me a call.
 
Marianne Bandy is a Realtor serving the Metro Denver Area with nearly 1000 happy clients served. She specializes in residential real estate giving stellar service to herclients whether they are buying or selling homes.   marianne.bandy@exprealty.com




By The Numbers

While home inventory increases to nearly double that at the beginning of 2018, sales remain stable at the same levels as a year ago. The law of supply and demand comes into play as the seller’s strong position softens, giving buyers more negotiating power. More homes on the market means prices will continue to stabilize, and homes sit a little longer on the market before selling.



Thanks for Thinking of Me!

As a full time professional real estate agent, I can help you or any of your family and friends when buying or selling a home. Thank you for keeping me in mind, and trusting me with your referrals!

Marianne Bandy
eXp Realty
303-746-7799
marianne.bandy@exprealty.com
 
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