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It’s no secret that the Denver real estate market has been hot, hot, hot for years now. So, when we heard rumblings of cooling, we asked real estate agents Stuart Crowell and Delroy Gill of LIV Sotheby’s International Realty’s Live Distinct team for their crystal-ball predictions about what’s to come in the Denver metro area.
Interest rates yo-yo, but the waiting game isn’t the best strategy.
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Chances are, rates will keep increasing into the new year, Crowell says. Read: Home prices will stabilize, inventory will rise. “But in 2023, we do see those rates reversing, probably by summertime. That’ll likely coincide with the start of the election cycle for 2024.” Waiting until prices plateau to buy won’t necessarily save you money though. “The more the bubble pops,” Gill says, “the higher the interest rates have gone. So your bottom-line expenses are either going to be the same or cost more if you don’t get into the market now.”
Quality will be king.
More inventory means less urgency on the buyer’s part. “There will be a change in what is being purchased,” Gill says. “Builders and fix-and-flippers will need to have a better product than they do today to demand that high level of price.” And residential sellers should step up improvements to increase price and speed to contract, Crowell adds. “You’re going to need to boost curb appeal, do the paint and trim work again, and maybe fix up that bathroom that’s been bugging you for two years,” he says.
Size will matter less.
Especially with high-end resale, “[buyers] are going to be less cognizant of price-per-square-foot numbers,” Crowell says, “and more conscious that they don’t need a 6,000-square-foot monster, just a nice, really well-done home.” In other words, Gill says, buyers will prioritize smart design that uses space efficiently. “A lot of people are working from home these days,” he says. “They’re looking for a place where they can do everything and not have to leave. The space needs to be functional.”
Rich and warm interiors will reign.
Tastes will finally move away from colder, boxy design to a softer, more embellished aesthetic. “People are leaning more into very warm, richly finished homes,” Crowell says. “We’re seeing developers who were building strictly modern incorporate traditional elements again into their properties.” You’ll see it in color palette choices, Gill adds, noting that the ubiquitous gray-and-white interior scheme is already being eschewed in favor of tans and creams.