Denver Area Real Estate Market Update
Our latest real estate stats are out from November, and we’re definitely seeing a “give and take” between buyers and sellers to close deals in the Denver Metro market. Homebuyers are gaining more negotiating power as demand has lagged across the area. At the same time not all sellers have been willing to bring down their list prices too aggressively. However, there have been many instances where both parties have come together to make a great deal for both sides. The recent improvement in mortgage interest rates has helped bring more buyers to the market. Will interest rates continue to lower? We will see how the economic and inflation news pans out this month. Here are a few additional notes:
Detached active listings at month end dropped to 4,572, a 16.02 percent decrease from last month, while attached homes dropped 8.94 percent to 1,681, representing a 216.62 increase year-over-year for detached homes and a 109.08 increase year-over-year for attached homes. While inventory increased from last year, the market is still witnessing the typical end-of-the-year inventory decrease, which is likely a direct result of homeowners choosing to either wait to list their homes until the New Year or remove their properties ahead of the holiday season.
Average days in the MLS increased 20 percent month-over-month to 36 days, which is exactly a 140 percent increase from this time last year. The attached market also exhibited a 20 percent increase month-over-month to 30 days, which is a 76.47 percent increase from this time last year. As the active listings count has grown, days in the MLS have also increased since May in direct relation to interest rates. Interest rates affect a buyer’s ability to afford a home, and as a result, buyers are taking more time to evaluate the value of each home, indicating that buyers are more discerning.
The average price dropped 0.58 percent month-over-month from $736,675 to $732,437. While this is a small drop, this is also a 4.17 percent increase from this time last year when the average price was $703,119. Additionally, market-wide price reductions are slowing, and close-price-to-list-price percentages dropped only 0.40 percent for attached and detached properties.
Do you need help navigating this real estate market? I’d be happy to meet over coffee to put together a plan to help you accomplish your real estate goals whether buying a home or selling or both!