Metro Denver’s housing market is transitioning rapidly from a strong seller’s market to a neutral one, and could transition firmly to a buyer’s market by the middle of next year. New index from real estate finance tech company Knock.
“Denver is now a neutral market. Prices are softening. Buyer,” said Sean Black, co-founder and CEO of Knock.
Nearly all of the 100 largest housing markets showed favorable moves for buyers in July. The biggest change happened in Boise, Idaho. Phoenix; Colorado Springs and Austin, Texas saw home prices rise 71% of his during the pandemic, according to Knock’s first “Buyer-Seller Index.”
Three overheated high-priced California markets of San Diego, San Francisco and San Jose have fully entered the buyer’s camp. By July 2023, about 15 of the 100 largest housing markets are projected to be buyer-friendly. Of the top 10 cities with the most buyers next summer, Colorado Springs is expected to be his third and Denver his eighth, according to the index.
Markets with the highest prices and the most price gains are the most vulnerable to a reversal, Black said. Cities with median home prices below $300,000 are the ones most likely to stay firmly in the seller’s camp. Fayetteville, North Carolina remains a strong seller’s market. Winston Salem, North Carolina. Little Rock, Arkansas. Savannah, Georgia; and El Paso.
The Knock Index incorporates six measures, including the average sale price to list price ratio, number of homes sold, listing inventory, average days on the market, median sale price, and rolling supply of homes in a given month. Weight it.
These measures recently changed direction in the Denver metropolitan area after gaining an edge on sellers during the pandemic. The inventory of available homes for sale increased by nearly two-thirds over the following period. May and June The number of homes sold fell 12.4%, but monthly price gains leveled off, according to the Denver Metro Real Estate Association.while June and Julyhome sales fell 21.2%, inventories rose 21.5% and median sales prices fell 2.5%.
Steve Danyliw, a member of the DMAR Market Trends Committee, said average sales to full-price sellers peaked at an impressive 107% in April. By July he was at 100.8%, a sign that competition is waning.
“The concept of many buyers paying more than the asking price is over,” says Danyliw.
The same goes for the day when the seller refused to yield to the buyer’s demands.another A survey of 449 sellers by Realtor.com We found that 9 out of 10 sellers accept terms favorable to buyers and 4 out of 10 accept contractual terms. None of the sellers refused the repairs requested by the buyer.
“Rising mortgage rates and prices have significantly cooled demand in the first half of this year. In addition, as more homeowners list their properties, an increase in inventory will help us to close a successful deal. There is an increasing incentive to resort to lower prices,” said George Ratiu, economic research manager at Realtor.com, in a statement.
Black said he doesn’t believe the housing market is in recession, as some analysts have claimed. However, the market moves so quickly that sellers may not realize that the benefits they once thought were gone.