Signs of a slowing housing market persist in the Mile High City, according to the latest data from the Denver Metro Association of Realtors.
Why is this important: After more than two years of plummeting stocks and skyrocketing home prices, Denver buyers have been waiting a long time for some relief.
Yes, but: Rising borrowing costs are causing buyers to reassess their buying power daily, according to local real estate agents.
What is happening: “We’re starting to move toward a balanced market,” said Libby Levinson-Katz, chair of DMAR’s Market Trends Committee.
- Current buyers have more home choices and competition has eased. But soaring mortgage rates have shut some people out of the market, Levinson-Katz said.
By the numbers: Inventory jumped 93.5% over the same period last year, according to the Denver Metro Association of Realtors. market trend report for September.
- Meanwhile, pending sales are down 27.9% year-over-year.
- The median selling price was up 9.4% year-over-year, but has been falling in recent months.
- In May, the median selling price was $615,000 and in September it was $580,000.
Sellers no longer get 100% of their asking price. On average, homes sold for 98.9% of list price in September 2022.
- At this time last year, homes were selling for 101.9% of the listing price.
- Nearly 60% of Denver-area sellers lowered their asking prices in July.
The houses are seated on the market longer too. In September 2022, homes sold in 26 days on average, compared to 13 days in September 2021.
And after: The market is correcting — not crashing, Levinson-Katz said.
- After the generally quiet holiday season, she expects prices to stabilize and days on the market to continue to rise.