Buyer challenges addressed by Lane.
Lack of homes, high prices buyer challenges.
Mindset important when you are a home buyer.
There is less than a 6-week supply of single-family homes on the market along the Front Range and not even four weeks of unsold condos and townhomes for consumers to buy.
Other hot markets, such as the Bay Area in Northern California, are in the same boat.
The first quarter seems to have set the direction of the market for the spring and summer selling season.
“It’s pretty clear we are not going to see a magical glut of homes come on the market,” said Lane Hornung, CEO of 8z Real Estate.
So what is a house hunter to do, when faced with the double whammy of high prices and low inventory?
That is the jumping off point for this month’s question and answer session between Lane and John Rebchook of Denver Real Estate Watch.
John: Lane, now that we have a full quarter under our belt, what is your take on the market?
Lane: The dollar volume is up year to date, really at record levels, due to home prices. It’s the lack of inventory that is holding back the number of transactions.
John: How challenging is it for a prospective buyer?
Lane: It’s not out of the question to say there are two buyers for every listing. and that’s almost across the board. In some areas, in some price points, just like last year the number of buyers bidding for a home is in the double digits.
John: Given the daunting conditions, it would seem that no one in the market is just kicking the tires. They are probably pretty serious about buying.
Lane: Buyers want to buy. No one is going to enter this market to get a little exercise. There are better ways to spend your time.
John: Since every prospective buyer is in it to win, how should they prepare?
Lane: I think you first have to go in with the right mindset. You can’t go in with the mindset that this market is irrational, or that there is a conspiracy against buyers. Unfortunately, that mindset isn’t going to help you get a home. No one is controlling the market. It is a function of supply and demand.
John: What is the next step for a home buyer?
Lane: Understand that while the overall market is hot and there are pockets of the market that are scorching, there are other pockets out there that might be a little less frenzied.
A good Realtor can introduce you to an area that very well could be the next big thing but has not emerged quite yet.
John: What if it is important for you to stay in an urban core neighborhood that shows no sign of cooling?
Lane: There still are homes in every neighborhood that for one reason or another are still languishing.
A lot of times it is because the home doesn’t show well. If you can imagine what it could look like and see beyond it’s current condition, it opens up some inventory that others have passed over.
John: In a market like this, it seems like it has never been more important to be represented by a broker who knows how to close a deal.
Lane: Absolutely. You need to be working with a professional who knows how to win and can take you across the finish line. You need a Realtor willing to put in the effort and hard work. It might not be for the first home you want; it might take three or four tries.
And remember: homes are selling every day. Today, someone is closing on a home. And that buyer probably had moments when they thought it would never happen.
Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. DenverRealEstateWatch.com is sponsored by 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.