“It’s time to Re-Think & Re-Consider,” says Perry & Co. Realtor Derek Rinetti regarding the current Denver real estate market.  Derek goes on to say: 

“Presently, market conditions are better than in the past as inventory is down, buyers are out shopping and homes are selling. While we continue to hear about “affordability” i.e. cost of money, is it the reason for the renewed market activity? Why or why not? Why are buyers seemingly more enthusiastic? Under the present conditions should a seller list now? One answer to the above questions is, BALANCE! I believe a large reason for the appearance of an uptick in sales activity has as much to do with “affordability” as it has to do with the lack of inventory. I trust what we are experiencing is a balance in our real estate market.

“While most everything in the world is influenced by supply and demand, including real estate, the existing combination of affordable money and lack of supply has made it a good time for a homeowner to seriously re-consider the market. Where some sellers and brokers might feel we have turned the corner and prices will begin to come back, what they are not taking into consideration is while we enjoyed a long period of housing appreciation and subsequent decline, incomes did not just fail to keep up, but they went the opposite direction.

“What I believe we are seeing and experiencing today is the development of an equilibrium between available housing (number of homes) and affordability (cost of money, incomes & home values are more aligned). Thus with the present market conditions, homes priced reflective of current market value & incomes, sell. Those homes listed based upon equity a homeowner wants to pull out of their sale or based upon values of the past, sit and languish.

“We don’t know what Spring has in store, but we do know inventory (supply) will increase and it may adversely impact the equilibrium sellers are enjoying today. So before one enters or re-enters the market they need to re-think the market, their approach and strategy.”