Denver Real Estate News – October 2023
An Unexpected Surge in New Listings
In a departure from the typical August lull, the metro Denver market showed an 8% month-over-month surge in New Listings since July. That’s a shocking increase since historically we would never expect activity to speed up moving from summer into fall.
It’s too early to tell if this is an ongoing trend or just a blip, but Your Castle Founder Lon Welsh thinks it may be due to a recent rise in seller sentiment. Potentially, sellers have given up on waiting for rates to go down this year, and rate hikes have convinced some to cave into the pressure of life events that usually make people move (having kids, getting divorced, upsizing, downsizing, a death in the family, etc.) However, it’s still too early to tell why more new listings were added in August.
Despite fluctuating rates, which reached a peak of 7.5% in mid-August, the market seems to be holding steady. Homes are selling right at the asking price, as opposed to at a premium. With a mere 2 Months of Inventory (MOI), the market still leans in sellers’ favor, but the new listings give a glimmer of hope to buyers.
INFO FOR SELLERS
Equity Is Your Advantage
A significant portion of homeowners find themselves with over 50% equity in their homes, making this a potentially lucrative time to sell. That pent-up equity can be used to offset the costs of rising rates and for a higher down payment on your next home. Well-priced homes in prime locations are still selling quickly. The demand for homes remains high. Looking forward, the number of Active Listings will likely continue to increase until a few weeks before Thanksgiving. Then, historically speaking, a number of those listings will get pulled off the market until mid-January (if they come back at all). Sales are typically slower around the holidays due to travel plans, time with family & friends, bad weather, etc.
INFO FOR BUYERS
New Listings Are Helpful in Your Search
Despite a roller-coaster August in terms of mortgage rates, the recent spike in listings should be noticeable for buyers. However, keep in mind that it’s still a seller’s market. This is not the time to ask for too many concessions or discounts. Homes are selling for close to list price. Instead, this change might amount to having 2 or 3 more houses to choose from in your search.
For those on the fence about buying, know that when rates do eventually drop, whether it’s 6, 12, or 24 months from now, there will likely be a massive influx of buyers. Competition will be fierce. Buying now may spare you from some of that drama. Plus, you’d be building equity in the meantime since modest price appreciation is prime to continue over the next several years.
(Info Source: DMAR (The Denver Metro Association of Realtors, Your Castle Real Estate 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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