As COVID-19 sent waves of uncertainty rippling through the housing market, sellers would list their homes and soon after have multiple offers from buyers -- both individuals and investors -- who had never even seen the place and would pledge well over the asking price.
Those days are long gone, and it's time sellers admit it.
That's according to the latest Denver Metro Association of Realtors Market Trends report that looks at October sales in Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties.
"Ultimately, sellers need to get the pandemic years out of their minds," wrote Libby Levinson-Katz, head of DMAR's Market Trends Committee, in a statement.
The low-interest rates of the COVID-emergency era are over, with mortgage rates now reaching around 8%.
As a result of that and more workers returning to work, demand has dropped.
"Sellers need to focus on value and put themselves in the buyer's shoes," Levinson-Katz said. "Buyers are no longer willing to overpay and, as such, pricing is the number one key in this market to sell a home."
DMAR recommends sellers make concessions and even obtain pre-inspection reports on their homes and make any needed fixes ahead of putting a home on the market.
The rub for buyers is the rise in mortgage interest rates.
High mortgage rates are putting many buyers off, even with market conditions seemingly in favor people looking for a new home.
Some buyers have turned to hard-money loans and gifts from friends and family to make homeownership possible, according to DMAR.
"Many buyers tend to hibernate for the winter, but for those who continue to look through the holiday season, there is less competition and sellers are usually more motivated to sell before the end of the year," DMAR noted.
The sharp rise in home costs the area saw over the past few years has evened out.
At the end of October, the median sales price of a home was $585,000, the same as it was in September.
But month to month, the number of closed homes plummeted by more than 11%. Over the past year that drop is nearly 16%.
Properties are now listed for a median of 16 days, and there are currently two-and-a-half months of inventory on the market.
While interest rates are turning people off from buying at the moment, Levinson-Katz wants them to reconsider that: "The key is to get onto the escalator of homeownership and experience appreciation as it moves upwards over time."
