I hope this email finds you well and eager like me to enjoy some beautiful Spring weather soon! For many folks, myself included, to say this first quarter of 2023 had some unexpected challenges is an understatement. While I personally have been recovering from a broken foot after a slip on the ice two nights before the new year, it seems economic uncertainty and global relations have also slipped (no pun intended) to new lows during this first quarter with looming bank liquidity concerns, higher than normal inflation, and layoffs.
These shifts may be the first indicators of a market starting to normalize but the pain for some homeowners and markets will continue for a while. Real Estate is historically an asset class that appreciates with time, and as such, homeowners must understand that owning a home can simply be a lifestyle expense if not managed properly. Owning property and having a sense of place offers one stability, but it requires responsible maintenance, improvements, and preservation, and with that labor of love, investment returns are earned over time. Conditions will remain favorable for sellers who price appropriately despite the average-days-on-market being greater than this time last year.
Sales Market Insight – The supply issue we’re experiencing locally will not correct itself anytime soon. In the luxury market, rising interest rates have a greater impact on sellers than buyers because many homeowners who wish to sell now are unwilling to give up a low rate mortgage to purchase a replacement property at a higher rate in a tight market. Consequently, limited inventory levels will continue to be a theme this year as many potential sellers may continue to wait for more favorable conditions, further fueling the imbalance in our market.
Rental Market Insight – While experiencing some relief from its recent highs last year, many downtown multi-family highrises and complexes are again offering lucrative concessions to attract tenants as more For-Lease inventory is delivered this year. This is good news for renters looking to save some money, experience a new neighborhood, or even upsize to adapt to their evolving work-from-home needs. Mom and pop landlords who have unique inventory to offer continue to benefit from Denver’s ability to attract and retain remarkable workforce talent and those well-qualified tenants are willing to pay a premium for a privately owned condo, loft, townhome, or single family home.
April Reminder – Denver’s 2023 Municipal Election Day is Tuesday April 4th. If you are new to Denver, or recently changed your address in Denver, you can visit Denvergov.org to register to vote or update your voter record.