As we enter the year's halfway point. the once predictable Denver Metro real estate market feels topsy-turvy as we navigate a new landscape, says the Denver Metro Association of Realtors’ Market Trends Committee.
A once reliable market with a peak selling season in June has taken a detour. The main culprit of higher interest rates is easy to identify. However contrasting perspectives on the market have been summed up well by memes circulating the internet: buyers fear a repeat of 2008, sellers hope for a return to 2021 conditions and renters expect interest rates to drop back to three percent. While none of these views are true, the increasing inventory is moving our market towards a balanced market with the current months of inventory sitting at 2.78.
Sellers who have followed the advice of their Realtors® have expertly navigated the shift by focusing on conservative pricing while ensuring their home is in turnkey condition to attract as much attention as possible. Presenting a home to buyers is paramount in this current market as buyers have options and, as such, are only keen to move forward with an offer when they see the value.
Buyers are tired of the breakneck speed of the market over the past few years and are simply taking their time. While some homes leave the market with multiple offers, many more sit for days, weeks or even months before finding a buyer. These purchasers are also eager to negotiate, even when a home is brand new to the market. If sellers are motivated, they will engage in the negotiation dance. However, home sellers who aren't quite as motivated may wait longer for their perfect buyer. Case in point, active listings rose 11.52 percent month-over-month to 10,214, a 68.27 percent jump year-over-year. Most notably, active listings are the highest they've been year-to-date over the last few years. showcasing that inventory is certainly climbing.
Speaking to the topsy-turvy feeling of the market, new listings declined 16.38 percent to 5,825. This change is notable as we typically don't see a decline in activity until later in the summer due to the start of the school year, high temperatures and buyer fatigue. Meanwhile, pending sales increased 143 percent and closed sales dropped 17.07 percent while median days in MLS rose 33.33 percent to 12 days. Increased pending sales seem to be contradictory to a rise in inventory and days in MLS, but they do indicate a market that is simply moving forward to the beat of a different drummer.
It is possible that we are simply experiencing a calm before the storm. Many consumers are holding off until the fall to align with the projection of lower mortgage rates. While the market typically slows down ahead of a presidential election, we may find ourselves in the throes of a bustling market this election cycle.
While the market as a whole is less predictable this year, it is important to remember that real estate at its core is hyperlocal. The activity in any one segment of the market is dependent upon price, condition and neighborhood. As such, it's important for consumers to work with a knowledgeable Realtor® in their area who can analyze the sold data expertly to help determine a price that will align with a homeowner's goals.
Learn more about the market from the Denver Metro Association of Realtors.
Thank you to our partners at the Denver Metro Association of Realtors for compiling this information.
If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.
