Magic Realty, Inc.’s Real Estate Blog

February 24, 2025

This report is more of an explanation of the basic principles that rule real estate as they pertain to today’s market in the Denver area.

In all my experience I can honestly say this is one of the most unusual and complex markets ever. Without proper training or insight some can’t compete. A large number of agents in the area have left the business or sold less than three homes total last year. This shortage of expert agents can affect your real estate transaction in a very negative way.

For a good while in Denver, the market was so strong that it required little experience, and homes sold quickly. That has since changed as supply and demand have impacted the market with the lack of single family homes being built. Add to the fact you have tons of agents unprepared for covid and changes in the economy such as rising interest rates.

There is a common misconception that a brokerage firm with teams, paying for leads or a magic bullet would yield better results. As opposed to hands on training in sales and marketing. In a down market like this, the agent you select is of upmost importance.

Some of what I discuss will be contingent upon lowered interest rates. Although this is uncertain, most believe it will happen soon to help balance the market out.

The bottom line is one solid truth : supply and demand! On the surface it’s really simple. Prices go up if there is a shortage, and prices go down if there is an overage. The key is to predict these changes before they occur. This is not as simple as it seems as most markets don’t highlight these clearly. However, when you add the secret ingredient that is right out in the open (lack of homes built in the last ten years) you have an explosive market just simmering to boil over with appreciation.

So when the recipe is a shortage of homes, lower interest rates, tons of buyers getting off the fence with an improving economy; the buyers are going to pay dearly. As will the sellers who may net more from selling their home but they will pay for the more expensive home through bidding wars.

Every market brings with it opportunities for some. We call them windows of opportunity and there is one upon us! With everyone waiting for interest rates to drop, there is less competition making offers on the same home. You may assume a higher than desired interest rate at first but you have the ability to refinance to lower rate when available. However you can’t refinance lost appreciation by waiting to purchase your home.

What if you marched to a different drum and sold now for a reasonable price, and negotiated a great price for your next home with concessions while the market is slow. When interest rates drop you’ll be able to refinance and see instant savings!

Please feel free to contact any one of us at Magic Realty Inc. for supporting statistics, public records, and MLS information as well as a detailed report customized to your particular needs.

Magic Realty Inc
Mitch Myers

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June 1, 2024

With 40 years of full-time real estate behind me, I have yet to see such a weird market. The Denver Metro Area has not been building very many single-family starter homes in the last 10-15 years. This has created a unique shortage in this demographic. Higher interest rates have forced many people to rent instead of buy, which in turn has increased rental rates. There is a huge block of buyers on the fence waiting for interest rates to lower.

Many people will flood the market and create multiple bids and ridiculous prices once the interest rate drops. Those that wait instead of selling and buying now will pay dearly. A good agent sees the windows that are open depending on the market and needs. Using this kind of information can help you tremendously.

There is a huge lawsuit settlement that goes into effect in August that will change the way we market and negotiate. Selecting an agent who is not up to speed on this and other huge changes in our market could cost you tens of thousands of dollars.

The economy is growing stronger, and interest rates will be coming down. Meanwhile, houses are still seeing good appreciation, and demand is strong.

Now more than ever, the agent you select will be key to your results. The days of just showing houses or putting a sign in the yard are gone. More importantly, real pros can get you more money than most agents.

Mitch Myers is your man.

Magic Realty, Inc.