Denver Real Estate News – November 2023
LOCAL MARKET UPDATE
Navigating Turbulent Mortgage Rates in Denver
Denver’s real estate landscape is witnessing significant shifts amidst a challenging interest rate environment. A 20% decrease in sales in September from the month prior, coupled with a substantial rise in mortgage rates to an average of 8.04% as of 10/25, has marked a period of slowdown and uncertainty.
Despite these hurdles, September showed surprising resilience with an 11.2% increase in Active Listings from August, though housing inventory levels remain well below the 50-year average. Home prices continue to showcase their strength, with single-family homes holding a median price of $640,000 and condos & townhomes at $420,000. However, sellers are experiencing a longer time on the market – now averaging 30 days.
This dynamic is creating a nuanced market with sellers still in a favorable position. Despite this, the rising mortgage rates are having a noticeable impact, with new mortgage application activity plunging to a 28-year low, as reported by the Mortgage Bankers Association. Homebuying affordability is being significantly challenged, with 30-year-fixed-rate mortgages passing the 8% mark, making borrowing increasingly difficult for potential buyers.
(Info Source: D.M.A.R. (The Denver Metro Association of Realtors, Axios, Bankrate, YCRE Analysis)
INFO FOR SELLERS
Capitalizing in a Competitive Market
Denver’s real estate market churns on, albeit with a recent slowdown in sales due to soaring mortgage rates. For sellers, this means adjusting strategies to stay competitive. With property prices remaining robust, at $692K on average in September, it’s crucial to price your home accurately to attract serious buyers. Homes are spending an average of 30 days on the market, a slight increase from the previous month, indicating a need for patience and strategic pricing.
Given the current economic climate, buyers are seeking value and are more inclined to request concessions, particularly in terms of mortgage rate buydowns. As a seller, being open to these negotiations can be the key to a successful sale. Despite the challenges, Denver’s market is resilient, and with the right approach, sellers can navigate these turbulent times effectively to get the best possible sales price.
(Info Source: D.M.A.R. (The Denver Metro Association of Realtors, YCRE Analysis)
INFO FOR BUYERS
Buying in a High-Rate Environment
The Denver real estate market presents unique challenges for buyers, with mortgage rates reaching an 8.04% average for 30-year fixed loans, causing a significant dip in new mortgage activity. As a buyer, it is crucial to assess your financial standing and explore various mortgage options to secure the best possible rate.
While the market remains competitive, the increase in listings provides more choices, though prices remain high with an average home price of $692K. Buyers are finding success through negotiating concessions, particularly in terms of interest rate buydowns, rather than pushing for lower listing prices.
In this seller-dominated market, it’s essential for buyers to stay informed, be patient, and negotiate strategically. With the right approach, navigating the high rates and finding your next home may still be possible despite the tough market conditions.
(Info Source: D.M.A.R. (The Denver Metro Association of Realtors, Axios, Bankrate, YCRE Analysis)
*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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