High interest rates continue to depress Colorado’s real estate market.
According to the October Market Trends Housing Report from the Colorado Association of Realtors, the number of homes available last month dropped about 13% while sales fell nearly 15%.
“Combined with a scarcity of homes for sale in the most affordable price ranges, the market segments with the most activity are in the $600s and up — driving median price incrementally higher from October of last year,” said Fort Collins-area realtor Chris Hardy.
In October, the median price for a single-family home was $570,250, nearly a 3% increase over October 2022.
Waiting in hopes both prices and interest rates will fall may frustrate potential homebuyers.
“Savvy buyers are taking advantage of the fall price reductions and the seller’s willingness to offer concessions. Those waiting on the sidelines may be disappointed when the rates go down and competition goes up,” said Boulder/Broomfield-area realtor Kelly Moye.
If interest rates decline in the next year, buyer demand could create another seller’s market, she said.
Aurora-area realtor Sunny Banka said housing inventory is down by 63% in some Aurora, Centennial, and Greenwood Village zip codes.
“For buyers waiting for the interest rates to drop, it is important to remember that when the rates drop, if they do, we will see another frenzy and very high demand for the low number of homes that are on the market,” she said.
Instead, buyers should take advantage of the slower holiday selling season to buy now because sellers are more open to negotiating on price and providing concessions.
“The motivated sellers that are not wanting to have their home on the market during the cold and blustery winter months are usually more open to considering an offer. It just takes the right seller and a well-qualified buyer. Buyers — now might be the best window of opportunity.”
Douglas County-area realtor Cooper Thayer said buyers can use leverage to negotiate lower prices and receive seller concessions.
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“We’re preparing our sellers to anticipate paying $5,000 to $10,000 on average in their transactions to get the deal to the finish line,” he said.
He said the market is beginning to feel more normal after the home-buying craze of the COVID era.
“Will the spring bring back buyer demand and higher transaction volume? Probably. But will we see the fast-paced, wild market of the previous two years again? Probably not, and that’s a healthy change of pace for now.”
The news and editorial staffs of The Denver Post had no role in this post’s preparation.