Metro Denver home sellers in the spring can reasonably expect to get listings under contract within a week, especially for low-priced properties. You must prepare yourself mentally.
In September, listings spent an average of 26 days in the market, more than three times as long as in April, when listings were billed for an average of 8 days. Monthly updates from the Denver Metro Association of Realtors.
The stat is one of many that highlight the shifting balance of power between buyers and sellers in a market that has slowed significantly as 30-year mortgage rates approach 7%.
Libby Levinson-Katz, incoming chairman of the DMAR Market Trends Committee, said in comments accompanying the report: “The market has entered a period of neutrality where extreme market bullish methods give way to a compromise phase, with buyers and sellers working together for a win-win experience.”
In Metro Denver, 7,683 homes and condos were put up for sale at the end of September. 10.7% increase from August 93.5% more than was available in September 2021While this may seem like a giant leap, the number of properties available to buyers remains less than half of the September average of 15,663 listings dating back to 1985.
One thing that’s keeping the market from plummeting is that sellers aren’t dumping real estate and gobbling up the market like they did in the late 2000s. In September, he had 5,237 new listings, up 1.3% from August and down 14.6% from the previous year. If higher interest rates push potential buyers out of the competition, sellers are reluctant to abandon comfortable mortgage payments and pursue something else.
At a 7% interest rate on a 30-year loan, the monthly payment for a typical Denver home would be $3,322. Jiro. In effect, that buyer is paying $1,452 more a month for a similar home than if they had pulled the trigger a year ago. And you need much more income to even out the quality.
A Zillow-sponsored study found that nearly 7 in 10 prospective buyers would quit their search if interest rates were above 7%. Mortgage applications to buy a home fell 14.2% in the week ending Sept. 30 from the previous week. They’re down 37% year-over-year, according to the Mortgage Bankers Association.
Denver metropolitan area home and condo sales completions fell to 4,114 in September, down 8.4% from August and down 27.6% from the same period last year. The median selling price for single-family homes was $632,000, down 2% from August and up 9.7% from a year ago. The median sales price for a condo or townhome was $410,000, up 2.7% from August 2021 and 7.9% from September.