18 offers, 12% over list price .... Market going bonkers again?

[James Carlson]

Ugh, not again. Are we entering crazy bonkers time again? 

I just had clients lose a home in the Denver suburbs a competitive situation reminiscent of 2021/2022. The home got 18 offers and went for 12% over list price. This isn't the first competitive situation I've seen in recent weeks.

What do you agents/investors think? 

Recent market stats from Denver and Colorado Springs lend some credence to this.

Denver

-- Median home price up 5% YoY in January. 
-- 5% might not sound too crazy, but A) We don't have February numbers yet and B) The trajectory is upward. Previous months were basically flat YoY.

Colorado Springs

-- Median home price up 3.5% YoY in February
-- Again, this is up from 1% YoY in January, so the trend is not only YoY increases, but an acceleration in the increase.

My thoughts? I don't think this is 2021 redux, but I do think things are going to get much tighter. The 2023 market lulled some buyers/investors into thinking they could relax, that they had some power and time to mull over decisions. The spring may be a rude awakening.

What's everyone seeing out there? In Colorado or elsewhere?

[James Carlson]

@Travis Timmons

I feel like there's an entire thread's worth of discussion around buyers who in 2021/2022 said, "I'll wait for it to cool down" and now are shaking their heads in disappointment. I mean, prices aren't going up as fast, but they're not going down and interest rates have decimated buying power. 

I'm not even criticizing them. I can understand why they made that choice, but it's tooough right now to look back.