DENVER – Buyers now hold the power in the Denver real estate market as home prices are falling and homes are staying on the market longer, according to a monthly update from the Denver Metro Association of Realtors.
“Most buyer motivations have shifted from buying for financial reasons to buying for lifestyle” and all the important statistics point to the market slowing down, said Andrew Abrams, chairman of the Market Trends Committee at DMAR, in annotations accompanying the latest housing report.
In this 360 in depth report, we will dive into:
- What Current Trends Show for the Denver Real Estate Market
- What it means for buyers and sellers
- What the latest rental report shows for those on the subway
Let’s look at the numbers 👀🏡
About 6,939 active listings were reported for the month of August, with new listings dropping 15.50% from last year. The median closing price for a single-family home last month was $744,589, down 4.39% from July.
The number of homes and condos sold last month continued to fall with 4,221 properties closed, a 5.93% decrease from July and a 30.21% drop from this time last year.
Closing price to list price ratio fell below 100% for the first time since July 2020, at 99.41% in August. The average sale price also experienced a drop of 2.54% compared to the previous month.
The biggest change this month? Homes and condos now sit on the market for about 19 days before selling.. This means that buyers have more time to buy a house and obtain some concessions, such as requesting an inspection.
“As the market changes, buyers have a little more powerThey have a little more time to walk through a house and make a decision,” Abrams told Denver7 this week. “And then when they get an inspection, they can ask for inspection items that mean a lot to them.”
What does the August housing report mean for sellers?
With increasing competition to attract buyers, Abrams said people should expect more deals that contain a seller’s concession.
“The advice for selling is: Do your research and understand what that research means. If a property is on the market, even though it may be trading higher, it doesn’t mean someone wants it at that higher price, so use that as an indicator of what’s too high,” Abrams told Denver7.
If you’re selling, he said, you have to base your price on the last 60 days, not the last 6 months, or you’ll probably have to lower your price.
What about those who rent in this market?
While the real estate market has now shifted toward buyers, at least for the time being, the same cannot be said for those who rent in the Denver metro area.
Rents continued to rise, albeit marginally, during the month of August, according to Apartment Lists’ latest rental report.
In Denver, rents rose a tenth of a percentage point last month, with renters paying about $1,440 for a one-bedroom apartment, up 6.2% from last year. Those who rented a two-bedroom apartment expected to pay a median price of $1,790.
Renters in Brighton, Aurora and Arvada paid cheaper rents last month, with median prices for a two-bedroom apartment ranging from $1,490 to $1,750.
Brighton, in fact, saw rents drop by about 1.4% over the last month, the biggest drop in the metro, according to Apartment List.
Thornton, Littleton, Castle Rock, Westminster, Broomfield and Parker were more expensive than Denver, with Parker paying about $2,240 for a two-bedroom apartment in August.
And while rents have also risen across the country, they haven’t seen as steep an increase in prices as the Denver rental market.
Apartment List data shows that compared to most similar cities across the country, Denver is less affordable for renters.
August Home Sales Report: Prices Down, Listings Down
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