The shifting housing market has something of a monopoly on industry news these days. Homebuyers, home sellers, and real estate experts alike wonder whether the Denverlisting shortage will ease, shifting the market closer to balance than in years past. This month's Denver Metro Association of Realtors' market stats show some progress in that direction but with some caveats.
More Power for Buyers?
The average sale price of homes in Denver has increased by 3.13% over the past year, settling in at $585,000 (as of September 30th). While home prices remain strong, this increase is slightly lower than the national 30-year average of 4%. The days of 7% yearly home price increases seem to be behind us. This adjustment suggests a more balanced market and a shift away from the seller's dominance we've seen.
While the Denver Metro seller's market holds its ground, there's a new player in the game buyers' rate buy-downs. Sellers are increasingly paying for lower rates on behalf of buyers all in the name of making the sale. The 2 months of inventory currently available in the Denver area is likely to thank for this buyer boon.
Buyers, this could be your moment. Concession requests are on the rise, giving you more room for negotiation compared to previous years.
Seller Pro Tip
For those considering listing their homes in the winter, prepare with pre-inspections before the snow blankets the city. Pre-inspections of your roof, air conditioning, and sprinkler systems can save time and provide peace of mind to buyers who can't easily conduct these inspections in colder weather especially considering that a buyer's concession renaissance that may be coming.
Holding Out For Better Rates
Propelled by a 12.61% decrease in new listings compared to last year, the close-to-list ratio has risen by 0.31%. Translation: Denver's home prices remain robust. But there's an interesting statistical comparison to note historically, August to September sees a mere 0.08% increase in active listings. This year, we've witnessed an 11.24% surge, indicating a significant gap between new listings and pending sales.
This discrepancy is very likely due to national mortgage interest rate increases and could point to a continued slowing in future home price appreciation. Or, buyers might just be biding their time. With experts looking toward a rate decrease in 2024, pending sales could pick up to meet any listing increases next year.
The October Housing Market
Denver's real estate market continues to evolve, hinting at an autumn of sorts for a real estate environment skewed wildly in the seller's favor. The Mile High City seems to be poised for a shift. Whether it be continued buyer restraint due to rising rates or a purchase surge in the coming year, we'll keep you updated.
Are you a seller looking to strike while home appreciation is hot? Or, are you a buyer ready to snag some concessions? Connect with one of our Denver Realtors to get started.
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