There is a shift currently taking place in the Denver real estate market. This is probably not the first you have heard of it as it follows a national trend towards the slowing of transactional activity in the housing market. This is not anything so dramatic or threatening as a market crash. Market forces and realities are simply changing and re-creating the landscape, as they always do, and always will. While some individuals and organizations undoubtedly have more influence than others, there is no one individual or group that is in complete control of the housing market.
“Sales of new single-family homes were down 22 percent in September 2018 from their recent high in November 2017, and existing home sales in September were down 10 percent.” New York Times – November 15, 2018
The current slowing is an economic reality throughout the country and is also true in the Denver Metro Area. Does this shift mean that everyone should take their football and go home? (Or retreat to their rented apartment as the case may be.) Is the game cancelled due to unfavorable conditions? Not by a long shot. While such a large change in the market may increase fear and anxiety for those that are actively looking to sell or buy, it also creates new angles. There are new opportunities emerging in today’s market; for buyers, sellers and agents alike.
“A new Harris Insights housing consumer study shows a full 90% of consumers use real estate agents to buy and sell their homes. This is a survey high, and is up 5 percentage points from the last study in 2014 and up 9 percentage points from the first study conducted in 2001.” Housingwire – November 12, 2018
As of today, the huge online enterprises of Amazon, Zillow, Google, etc. have not found a way to eliminate the enormous need for skilled, dedicated real estate agents. Certainly they are trying to corner this vast market, but they are not squeezing out the agent, at least not yet. To their credit, the millennial generation, which is now into the prime of their homebuying years, largely employs real estate agents (91%). Generation X is even higher, with 93% relying on realty services. Even 81% of consumers over 55 years old choose to work with agents and this demographic represents the lowest percentage currently. Perhaps the other 19% of people 55 and over are simply mistrustful and prefer to do things on their own.
For the rest of us, we are choosing the support of highly-skilled, professional real estate agents. Buying and selling homes in Metro Denver can be complicated, involves a certain amount of risk, and can take up a lot of precious time. It also takes an emotional toll as people wrestle with important questions that impact all aspects of daily life. Should I buy an older home close to work in a neighborhood like Baker or Park Hill? Or should I pack up the condo and relocate the family to the suburbs in Littleton, Stapleton or even further north where you can buy a brand-new home for less money?
For those agents providing the highest level of service and earning the highest rewards, they must maintain their focus and bolster their foundations even while the proverbial ground may be shifting under their feet. Perhaps more than ever, an effective agent remains diligent in maintaining their understanding of the market, they educate themselves, and they continually develop their skills in communication, marketing, and sales. They also must re-double their commitment to serving their clients in a dynamic environment. As the real estate market in Denver shifts and changes, the top agents will also change and adapt. If selling a home in Denver was simple 6 months ago, it is certainly more difficult now. Potential homebuyers may also be in a difficult position and it makes sense (both economically and emotionally) to employ the services of a dedicated real estate agent.