The Denver housing market remained stable in October 2023, according to the Denver Metro Association of Realtors’ (DMAR) latest market trends report. Despite the traditional slow-down that tends to happen this time of year, the market continued to offer opportunities for buyers and sellers.
The median sales price of a home in October reached $585,000, remaining steady from September and showing an increase of 2.63% year-over-year.
Inventory levels also remained stable, with 7,482 active listings at month’s end, demonstrating a slight drop of 1.93% from September but an increase of 2.63% compared to the same period last year. Sellers contributed 3,816 new listings to the market in October, a month-over-month decrease of 16.84%, a customary seasonal dip. As a sign of market resilience, pending sales rose 1.72% compared to October of last year.
Overall, fewer homes sold in October when compared to last month, and year over year data. The number of closed transactions reached 2,986, a 11.6% decline from the previous month and a 15.7% decrease from October of last year.
Libby Levinson-Katz, chairwoman of the DMAR Market Trends Committee, compared the current market to the more restrained pace of 2019, before the pandemic. She emphasized the importance of pricing, urging sellers to focus on value.
“Pricing is the number one key in this market to sell a home,” says Levinson-Katz. “At the end of the day, properties will continue to trade hands for the right price and terms.”
Buyers have become more discerning about inspections and repair requests, prompting sellers to consider pre-inspections to address potential issues. The report revealed that nearly six out of ten sales involved sellers providing concessions to buyers, with an average concession value of $9,390. In the face of such competition, existing home sellers can face some challenges when compared to new home builders, some of whom are offering significant financial incentives.
Additionally, the market is experiencing an uptick in new construction, accounting for about three out of ten home sales, setting a record for the third quarter. With an increasing inventory of listings, buyers have more options available during what is typically considered a slower period.
Interest rates remain high, but DMAR’s Levinson-Katz urges buyers to not consider this an obstacle, instead choosing to “get onto the escalator of home ownership and experience appreciation as it moves upward over time.”
Even with the pressure of rising mortgage rates, “the market found ways to keep on breathing,” says Aldo Svaldi, Residential Real Estate Reporter for The Denver Post.
As winter approaches, the market anticipates a potential slowdown, but for buyers who continue their search during the holiday season, there is less competition, and sellers are often more motivated to close deals before the year ends. Denver’s housing market remains dynamic, offering opportunities for those who are willing to engage with it throughout the changing seasons.