Homeowners in Denver are increasingly looking to make a deal as the spring home-buying season gets underway.
The number of houses for sale in metro Denver shot up to 8,554 by the end of February, according to a monthly report from the Denver Metro Association of Realtors. That’s an increase of 55 percent from the same time last year. In February 2022, there were just 1,266 houses for sale.
High mortgage rates — hovering around 6 percent — have discouraged people from putting their homes on the market because they don’t want to give up a low mortgage rate locked in years ago. But that’s starting to change as elevated interest rates look like they are here to stay for now.
“As time has gone on, the conversation has evolved from when rates will decline to navigating a market with high interest rates for the foreseeable future. As time passes, lives evolve and the low interest rate carries less weight when considering staying in a home that no longer meets their needs,” said Amanda Snitker, Chair of the DMAR Market Trends Committee, in the report.
With all the sellers looking for a buyer, buyers are gaining the upper hand. People are taking their time to evaluate all their options before putting in an offer. Homes are sitting on the market for an average of 29 days, up from 23 days at this time last year.
“With higher inventory, the basics always work; homes that are priced well, updated and well-maintained will appeal the most to buyers and sell quickly. Homes in less desirable condition or priced too high will take longer to sell and require price reductions to hit their target market,” according to Snitker.
A growing number of deals are falling through, with 15 percent of Denver’s pending sales canceled in January, according to the realtor report.
There’s no doubt the housing market is slowing in Denver as three years of elevated interest rates and economic unease take a toll. That should eventually lead to lower home values and make it easier to afford a house. But overall prices still haven’t moved much. The median price for a home in the Denver area is roughly $599,000, unchanged from a year ago, the report found.
