Spooked by interest rates? Metro Denver Market Review October 11-17, 2023

We all know interest rates have been on the rise, so how has this affected the housing market in the Denver metro area?

Here is a report of the most important data to look at, drawn from October 11-17 by Megan Aller with First American Title:

Inventory Availability: The current housing supply in Metro Denver stands at 2.2 months, offering buyers a unique chance to negotiate, request inspection-related repairs, avoid waiving appraisals, and potentially seek concessions from sellers to lower interest rates or cover closing costs.

Market Listings: Our average daily active listing count has risen by 2.0%, totaling 7,068 properties available for sale, including 887 new listings. However, new listings have declined significantly by -10.1% compared to last week and -11.3% compared to the same period last year, resulting in a tighter inventory for buyers in 2023. There were 755 pending transactions.

Selling Odds: The likelihood of selling within 30 days has slightly increased to 42.9% for listings posted last week, although it's important to note that this figure is below the historical October average of 49.4%.

Market Equilibrium: To reach a balanced market with a 6-month supply of inventory, we would need 19,706 listings available for sale. Currently, we are at 35.9% of this equilibrium.

Property Viewings and Time on Market: In the past week, there were 10,535 showings, averaging 1.5 showings per property. On average, properties took 14 showings to go under contract, with a median time on the market of 19 days.

Price Adjustments: The rate of price reductions decreased week-over-week, with 45.0% of units going under contract experiencing reductions. Notably, the size of price reductions was larger this week, averaging -5.9% off the original price.

Luxury Market: Homes priced over $1,000,000 are currently more abundant than in previous years. This presents an excellent opportunity for move-up buyers to sell their mid-priced homes and negotiate favorable terms with motivated sellers.

Are you wondering if it's a good time to buy or sell a home? This is what I've been telling my clients: it all depends on your personal situation.

We all know that buying a home is one of the greatest purchases you can make to provide you and your family with long term stability, but you do not want to stretch yourself to thin, or make yourself "house-poor".

Message me or call if you have any questions about our current market!

-Brett

(303) 916-3483

"Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” - Warren Buffett

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