As we hit the halfway point in the year, Denver’s housing market is showing signs of stabilizing. More homes are becoming available, but many buyers hesitate due to high prices and interest rates. It’s clear that the cost of housing, especially at median price points, remains a significant hurdle.
Inventory levels strongly signal that we’re approaching a balanced market for the first time in over a decade. One helpful metric for understanding this balance is the Months of Inventory (MOI). MOI indicates how long it would take to sell all the current listings if no new properties were added. For example, if one home sells per month in a neighborhood with six homes on the market, the MOI is six months. A balanced market in Denver typically has 4-6 months of inventory. Currently, the MOI stands at 2.78 months.
Buyers are fatigued from the fast-paced market of recent years and are now taking their time. While some homes attract multiple offers quickly, others sit for extended periods before finding a buyer. Buyers are also more eager to negotiate, even for new listings. Sellers motivated to move must engage in these negotiations, while those waiting for the perfect buyer might face longer waits. Active listings have risen by 11.52% month-over-month to 10,214, a significant 68.27% increase year-over-year. This surge indicates that inventory is climbing.
Despite overall market unpredictability, real estate remains hyper-local. Activity varies significantly based on price, condition, and neighborhood. It’s crucial for consumers to work with knowledgeable real estate agents who can analyze local data to set realistic prices and meet homeowner goals.
Info For Sellers
Contract terminations are rising, so sellers need to be cooperative and solution-oriented during inspections to keep sales on track. Today’s buyers prefer homes with minimal deferred maintenance and modern updates. Ensuring that the HVAC, roof, and water heater are well-maintained and within their lifespan can help sell homes faster and for better prices. As competition among sellers intensifies, expect more deals to include seller concessions. In May, 56.3% of closed transactions involved a seller concession, with average concessions at $9,250 and a median of $7,000. This is up from May last year, where only 47.8% of transactions included concessions, averaging $7,723 with a median of $5,000.
Info For Buyers
With properties spending more days on the MLS, now is a great time for buyers who previously couldn’t compete in the frenzied market to start shopping again. While buyers are cautious about potentially purchasing at a market peak, sellers often still expect multiple offers on overpriced properties.
As Denver’s housing market moves towards equilibrium, both buyers and sellers must adjust their strategies. Engaging with experienced real estate agents and staying informed about local market conditions will be key to navigating this evolving landscape.
***I 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.***
