Denver-metro housing market heading toward greater balance

by | Nov 4, 2022 | Blog, Denver Real Estate Market, Real Estate | 0 comments

Sellers faced new realities in October as Denver’s housing market continued its transition toward a more balanced state.

Just a few months ago, homes were snapped up nearly as quickly as they were put on the market, in an average of 9 days in June, for example. But since then, interest rates have risen and homes are staying on the market more than three times longer than back then: for an average of 28 days.

Sellers are now advised to price realistically, rather than aiming high.

According to the Denver Metro Association of Realtors’ (DMAR) monthly report, “Houses are no longer selling themselves.” DMAR advises real estate brokers to “invest in photography, staging and open houses plus have a price reduction strategy ahead of listing.”

DMAR’s report illustrates the drop in activity. While active listings of single family homes were up significantly from last year at 7,290 (5.12% less than in September, but 115.94% higher than October of 2021), the number of closings dropped, to 3,315. That’s 24.64% less than in September and 40.33% less than October of 2021.

In line with this decrease, prices are beginning to drop as well. The average price of a single family home in October was $661,335—1.36% less than September and 8.22% less than October of 2021.

Although sellers aren’t enjoying the same dominance as before, the current situation allows both buyers and sellers to benefit, notes DMAR’s Market Trends Committee Chair Libby Levinson-Katz

“There are opportunities to look at the silver lining of every scenario,” she writes in the report. “The evolving marketplace offers buyers more options and the gift of time to decide on a home while negotiating terms that suit their needs. Meanwhile, sellers can analyze the market to position their homes correctly while being able to experience a great return on investment due to rising prices over the last years.”

November should “represent a similar flow as October,” predicts DMAR Market Trends Committee member Andrew Abrams, with “buyers being patient to find the right house and negotiations tough for both sides.”

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