Amateur hour has come to an end, says Amy Bayer, cofounder and co-CEO of PorchLight Real Estate Group. During the pandemic housing frenzy, Bayer notes, it didn’t take much for an agent to sell a home. Now, with interest rates hovering around 7 percent, she believes only brokers who truly understand the market will succeed.
After many years as an agent, Bayer now focuses on “people training” at PorchLight, which operates across the Denver-Boulder metro area. Following a period of extreme market conditions, in which buyers were paying 20 percent to 30 percent over asking price, Bayer believes the market is finally beginning to normalize. While interest rates are higher today compared to three years ago, Bayer says she’d rather buy or sell now than during the chaotic pandemic market.
“Interest rates will likely stay where they are for the foreseeable future,” Bayer says. “And the average cost of a home isn’t going to drop back to pre-pandemic levels. But with the election behind us, the luxury market is gaining momentum again, and we’ll begin to see more inventory hitting the market.”
So, is it currently a buyer’s or seller’s market? “It’s a professional’s market,” Bayer says. That means sellers need an agent who truly understands market nuances to get the best deal, while buyers need a skilled negotiator by their side. In Bayer’s view, this shift is a positive development for consumers, as it raises the standard of expertise in the industry.
Homes in less desirable neighborhoods aren’t seeing the same demand as they did in recent years, but the end of bidding wars signals a market that’s stabilizing.
