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Denver housing market pendulum swinging quickly toward buyers

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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%.

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