Opportunities Arise for Savvy Buyers and Patient Sellers in the Metro Area
In November, Denver’s real estate market experienced a temporary slowdown, presenting opportunities for both buyers and sellers as they navigate the impact of elevated interest rates paired with the seasonality of the market.
Libby Levinson-Katz, Chair of the Denver Metro Association of Realtors’ (DMAR) Market Trends Committee, uses a fitting comparison for the season, likening homeownership to a gift. Noting how owning a home “serves as the single best vehicle to attain individual and generational wealth,” she sees this holiday period as a gift for both buyers and sellers.
For buyers, the “gift” is increased inventory for research, viewing and selection. Active listings in November increased 6.89% over the previous year to 6,684, while closed sales dropped by 13.98% year-over-year, as reported by DMAR’s latest market trends report. Traditionally, housing markets cool off during the colder months, as well as due to the holiday season. The market currently has a healthy 2.5 months of inventory, and Levinson-Katz encourages buyers to see the opportunity this time of year, giving them a greater choice with less competition.
For sellers, their “gift” is the time to “prepare their home and mindset for the marketplace as homes are taking longer to sell,” says Levinson-Katz. DMAR’s latest report states that median days in the MLS is up 37.50% over last month, standing at 22 days, and aligning with year-over-year figures of 21 days last November. Sellers can use this seasonal slowdown to their advantage, allowing time to enhance their properties and set their minds to navigate the market strategically.
“Sellers who desire to sell and price their homes accordingly will find there are still plenty of buyers out there – even in the top price range of our market,” said Susan Thayer, a member of the DMAR Market Trends Committee.
Interesting to note, median home prices are holding steady. The median price of a single family home was $625,000 in November, down 3.1% from October but still up 1.6% over last year. The median sales price for condos and townhomes was only down 1.14% from last month but up 2.1% annually, standing at $418.475.
As Levinson-Katz notes, this shifting market puts us more in line with pre-pandemic data, “finally finding a sense of equilibrium.” And, as forecasters predict interest rate cuts next year, this will likely lead to a new burst of activity for the housing market.