With more inventory and motivated sellers, this fall offers buyers a unique chance to negotiate before spring competition heats up. According to the latest Denver Metro Association of Realtors (DMAR) Market Trends Report for September 2024, inventory levels continue to rise, with active listings up 3.65% month-over-month and a notable 45.7% increase from last year, standing at 11,115.
Months of inventory, now at 3.6 months, signal a more balanced market, offering buyers a rare chance to explore homes without the pressure of immediate competition. Libby Levinson-Katz, chair of the DMAR Market Trends Committee, states, “This represents the first time months of inventory have crossed the three-month mark, meaning it takes an average of 3.6 months to find a buyer, which traditionally has been categorized as a balanced market. This is a far cry from a pandemic-fueled market which had less than one month of inventory.”
Homes are spending more time on the market – 25 days on average – giving buyers additional leverage in negotiations. Median days in the MLS increased 19.05% from last month, while new listings stayed relatively unchanged with 5,053 and pending sales increased by 3.64% to 3,761.
Median home prices showed a slight decline. The median close price of residential homes, both detached and attached, was $576,171 in September, dipping down 2.34% from August and 1.51% from last year. For detached homes, the median price stood at $630,000, a decrease of 1.56% year-over-year, and attached homes dipped 3.93% from last year to $403,500.
The Denver Post notes, “Timing might be at play in that buyers may not have had enough time to respond to the sharp drop in borrowing costs that came after the Federal Reserve cut a key interest rate Sept. 18.”
“Many buyers who I am working with are simply waiting for truly the perfect fit, before submitting an offer,” adds Levinson-Katz. “They aren’t willing to make compromises on a home they have to pay more for due to higher interest rates. When they do find the right home, even if a home is new to the market, they are eager to negotiate.” She also notes that some buyers may be waiting in anticipation of the upcoming election.
Many sellers often hold off on listing their homes in the winter, as spring is traditionally Denver metro’s most competitive time when homes have the highest sales price throughout the year. For sellers considering this, now is the time to take exterior photos – while lawns are free of snow and landscaping is colorful and bright.
But, for buyers, deciding to wait may mean facing higher prices and more intense competition. With mortgage rates stabilizing and more homes on the market, this fall and winter could be a better time to lock in a deal before demand surges again.