Home sales in the Denver area decreased in October as high mortgage rates discouraged buyers, and some sellers decided to wait for more favorable conditions. New listings dropped 5.1% from September.
At the end of October, 7,290 homes were for sale— still well below historical averages, and the inventory was only about half of what was available in October 1985.
“While our market changes, the point that has been largely overlooked is that the last two years have been the exception and certainly not the rule. If we were to remove 2020 and 2021 from the record books, our market trajectory is on pace with where it should be had COVID-19 not happened,” said Libby-Levinson-Katz, chairwoman of the DMAR Market Trends Committee and a Denver Realtor.
Sales rate drops across Colorado
Statewide, the number of new listings for single-family homes fell by more than 20% between September and October, which wasn’t quite as severe as the 25% drop experienced in metro Denver, according to a report from the Colorado Association of Realtors.
New listings are down 21.6% statewide over the year and 22% in metro Denver – indicating a similar pullback in seller activity in both areas.
In comments accompanying the report, Boulder-area Realtor Kelly Moye described the market as “stuck.”
“Sellers are stuck in the prices of the past and buyers are stuck with the fear of what the future may hold,” Moye said.
“Sellers are learning to price to 2021 numbers, and buyers are learning to leverage motivated sellers by requesting concessions to buy down their interest rate. Both seem to be working to keep the market rolling in what typically would be a slow time of year.”
Prices drop but remain high
The average and median close prices for homes in the Denver metro area dropped from September. In October, the average price was $661,335, while the median was $566,000.
That’s a drop from $670,461 and $580,000 in September. It is, however, still up from October 2021, when the average home price was $611,076, and the median price was $534,700.
“This evolving marketplace allows buyers more options and the gift of time to decide on a home while negotiating terms that suit their needs,” Levinson-Katz said in the report.
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“Meanwhile, sellers can analyze the marketplace to position their homes correctly while being able to experience a great return on investment due to rising prices over the last years. While the market changes, the past two years continue to represent the exception and not the rule. If one was to remove 2020 and 2021, the Denver Metro market trajectory is on pace with where it was predicted to be, had COVID-19 not happened.”
Still a good time to sell
Levinson-Katz suggested homeowners interested in selling shouldn’t wait because buyers are still actively searching while worrying interest rates will continue to increase.
“As the Denver market normalizes, I’m grateful for opportunities to look at the silver lining of every scenario,” she said in the report.
“This evolving marketplace allows buyers more options and the gift of time to decide on a home while negotiating terms that suit their needs. Meanwhile, sellers can analyze the marketplace to position their homes correctly while being able to experience a great return on investment due to rising prices over the last few years.”
The news and editorial staffs of The Denver Post had no role in this post’s preparation.