The current state of the Denver housing market is a mix of conflicting information and challenges for both buyers and sellers.
The Dever housing market in February started out strong, our inventory decreased each week.
Fluctuating Interest Rates Affect Mortgage Applications and Buyer Behavior
The interest rates went down then up almost a whole percentage point. That caused our mortgage applications to make a huge 25% drop.
Two Distinct Types of Buyers Emerge in the Denver Housing Market
We seem to have two types of buyers right now. The ones who really want or need to buy and are organized and are diligently looking and then people who aren’t organized and don’t know what they want or how to get it. The interest rates probably knocked a few buyers out of what they wanted to buy and hopefully, they will continue to look but there is a chance they are leasing and will need to sign another year’s lease, therefore kicking them out of the market.
Bidding Wars and Seller Concessions Impact Sales in the Denver Real Estate Market
We are seeing bidding wars, it depends on price, condition, and location.
We are seeing sellers pay for Mortgage Buy Downs if there wasn’t a bidding war so that buyers can get a better interest rate.
We are seeing Contingent Offers again from Buyers.
Investors Face Challenges in Buying and Renting Out Properties in Denver
It is difficult for investors to buy a property and rent it out right now with the interest rates, so buyers are not competing with as many investors as they were a few years ago.
We could be at the top of the market this spring for a year or two. We don’t have enough inventory for us to crash, but if inflation doesn’t stop the Feds will continue to keep the interest rates fluctuating. Causing buyers to be hesitant or it pushes them out of the market.
Buyers, if you can afford to buy, this is a good time. You have some but not a lot of competition. We are at all-time highs with inflation and interest rates, the housing prices will probably flatten out. Each price range and neighborhood will be different so talk to a seasoned professional, like me, so we can help you decide if it is a good time for you.
Homeowners if you have to sell, SELL! Don’t stress out about it. We are in a seller’s market we don’t have enough inventory. Buyers want more homes to see.
Foreclosures are on the Rise in Denver Real Estate: Options for Homeowners
Foreclosures are on the rise. People lose their jobs – it happens and we’ve been hearing about the layoffs for the past year. Most people have equity in their homes and should not lose that equity to foreclosure. There will be a few that don’t have equity and that is not the end of the world. Call me and let’s figure out how to get your home sold so you can make your life change and be ok. The stress of potentially losing a house is all-consuming. It is hard! If you are thinking that is or could be your situation, let me help you. You want to be proactive and beat the stress.
Denver Housing Market: Insights from the Surrounding Counties’ Numbers
Our average closed price is up to $657,921 +1.29% from last year. If we look at Detached homes the average closed price is $731, 318 down 1.42% from last year. The attached average closed home price was $473,995 up 3.11% from last year.
Slower Market Movement Doesn’t Necessarily Mean a Decline in Prices in Denver Real Estate
Our average days on market was 46. That is up 243% from last year. But…it is close to what we saw in 2018 and 2019 our “normal” years.
Denver metro area month-end inventory was 3,778. That is up 208% from last year but it is only half of a month of inventory and that makes us an Extreme Seller’s Market to be an Equal Market we need to be over 10,000, maybe even 12,000 properties for sale.
Here’s where we get to the conflicting information that you are going to hear about.
We had 2,661 home sell or close. That number is down 24.87% from last year. The conflicting part is that you will hear that the market is down, and yes, the number of homes that are selling is down, but the prices are not. The market is moving slower, we are not down.
The Denver Housing Market Presents Both Challenges and Opportunities for Buyers and Sellers.
Fluctuating interest rates, bidding wars, and a lack of inventory are just a few of the factors influencing the market. However, despite the slower movement of the market, prices remain high, making it a good time to buy or sell for those who are prepared.
If you’re thinking about entering the Denver real estate market, it’s important to work with a seasoned professional, like me, who can help you navigate the complexities of the current market. With the right guidance, you can make informed decisions that will help you achieve your goals. So don’t hesitate to reach out and get the support you need to succeed in today’s real estate landscape.
Do you have new real estate goals?