People looking to buy a home in Denver in December have a lot going in their favor compared to recent years of rapidly rising prices and a shortage of inventory.
That’s according to the Denver Metro Association of Realtors.
Some of what’s working for buyers has to do with the uncertainty of the market.
“November brought a unique set of challenges,” wrote Amanda Snitker, chair of the DMAR Market Trends Committee, in its monthly market trends report.
In the mix: a heated presidential election, the Federal Reserve’s cut in interest rates, fresh employment data and consumer price index reports.
All that has created a flux in consumer confidence, Snitker said. The DMAR report tracks real estate data across Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties.
Lots of homes are sitting on the Denver market.
The holidays are usually a sluggish time in the housing market, and sales are especially slow this season. There were 9,310 homes for sale at the end of November, thousands more than there were at the same time any of the past four years.
For comparison, in 2021, the metro market saw a record November low of just 2,248 homes for sale. The high was set in 2006, when there were 27,530 listings at the end of the month. Back then, snagging a deal was easy.
The median price for a home in the Denver metro is $585,000. Prices are still higher than last year by almost 2 percent, but that’s significantly slower than the price growth seen in some recent years. (Costs are also lower than they were earlier this year, which is typical with seasonal trends.)
Homes are staying on the market for a median of 17 days. In 2021, it was just four days.
Longer waits and more selective buyers are forcing home sellers to slash their original asking prices.
It’s adding up to a significant slowdown in the real-estate market. The metro market has seen e nearly $23 billion in activity this year, nearly 20 percent less than the same period in 2021.
Crystal ball, anyone?
Looking toward 2025, DMAR is unclear about how a new presidential administration, changing interest rates and inventory will shape the market.
One prediction the group is betting on: Buyers and sellers are taking a break for the holiday season, and more homes could sell in the new year.
Meanwhile, home sellers might try to make their properties more attractive. Sellers would do well to conduct pre-inspections, buy down interest rates and ensure homes are ready to show, according to DMAR.
And now, with so many homes on the market, could be a time for buyers to get a good deal.
Buying or selling a home? Let us know how it’s going, or tell us your questions about the housing market, by emailing [email protected].
