Home sales are dropping in the Denver metro as buyers and sellers tussle over who has the upper hand.
Compared to last year, closed deals were down nearly 7 percent in May, which is typically the busiest month of the year for home sales, according to a report from the Denver Metro Association of Realtors.
The attached segment, which includes things like duplexes and condos, shows an even sharper decline of 17.8 percent.
Denver’s housing market has been slowing since interest rates started to climb in 2022. The slowdown is getting more pronounced with mortgage rates staying stuck well above what people became accustomed to in recent years.
The real estate report notes that for a homeowner with a mortgage rate between 3-4%, which includes many people who purchased their homes at the start of the decade, monthly payments could jump by as much as $2,000 were they to step up to a larger home.
The number of homes for sale is more than double what was available in 2022, with homes taking longer to sell. But the pileup in inventory is starting to slow as sellers hesitate to put their homes on the market, according to the report.
Those who do want to sell their homes need to be ready to accept the current dynamic, where buyers often have more leverage.
“Sellers are finding it difficult to accept concessions and buyers’ inspection requests, but without these incentives, buyers often move on to properties that are better prepared for today’s market,” the report said.
