Denver Real Estate News – May 2023
Inventory is on the Rise This Spring, As It Should Be
Denver’s real estate market in March showed a significant increase in active listings, up by a whopping 103% from last year, signaling a potential shift in the market. With around 4,500 active properties at the end of the month, this is still significantly lower than the 30-year average of about 13,600 listings at this time of year. However, the increase is notable, given that the market has been exceptionally tight for the past few years. This indicates that sellers are becoming more comfortable with the current market environment, despite the economic downturn and fluctuating mortgage rates. Regardless of the increase in listings, prices have dropped by an average of around 5% from last year, with homes experiencing a more significant decline of 6% and condos dropping by 4%. The average days on market increased to 37 days, compared to just 12 days in March of last year. Furthermore, 37% of homes required at least one price reduction to sell, indicating that sellers may still need to be flexible with their pricing.
INFO FOR SELLERS
Price It Right the First Time, Or Lose Money
For sellers, the latest data shows that pricing your home appropriately is critical in this more competitive environment. With 37% of homes having required at least one price reduction to sell in March, it’s essential to determine the right listing price and not overprice your home. The good news is that this figure is an improvement from November 2022 when the market likely hit the bottom of its cycle, and 58% of homes required a price cut to sell. This suggests that the market has stabilized somewhat, and while it’s still crucial to price your home competitively, there may be less downward pressure on pricing than at the end of last year. Overall, setting the right price is always key to achieving a successful sale in Colorado’s evolving real estate landscape.
INFO FOR BUYERS
More Homes Mean More Opportunities
Buyers can still expect a competitive market, but the rise in inventory since last year is helping the situation. While the increase in listings is a promising sign for buyers, it’s too early to tell if this trend will continue, or if the market will revert to its previously tighter conditions. Nonetheless, this shift could provide a window of opportunity for buyers to make their move in a changing market.
Mortgage rates have fluctuated this year in the 6% range, and it seems buyers and sellers are still adjusting to the new rate environment. It’s not quite “business as usual” like the pre-COVID years. Interestingly, the average discount rate in March was only 0.2%, a stark contrast to last year’s 6.4% premium. This suggests that buyers are getting homes for very close to what they are listed for so far this spring.
Opportunities Abound!
Overall, there can be opportunities whether you’re buying or selling. Please reach out to me if you’re thinking of making a move – I’d love to be a resource for you in whatever capacity for your real estate goals!
*We use reasonable efforts to include accurate and up-to-date information. The real estate market changes often. We make no guarantees of future real estate performance and assume no liability for any errors of omission in the content.
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