First-Time Homebuyers Lead the Charge in Denver Metro Real Estate Market Despite Seasonal Slowdown
Key Highlights :
September is usually a slower month for the Denver Metro real estate market, and this year was no exception. According to the Denver Metro Association of Realtors' monthly report, new listings, pending sales, and closed sales all declined from August, with closed sales dropping about 20%. Despite the slowdown, prices held steady at a median of $585,000.
First-time homebuyers, not tied to historically low-interest rates, are leading the charge on purchases. Libby Levinson-Katz, chair of the DMAR Market Trends Committee, explains that this is the perfect market for first-time homebuyers to seize opportunities. “While interest rates are high, these buyers can negotiate instead of jumping into bidding wars where they might pay 10 percent over the asking price to secure a property like many did over a year ago.”
At the end of September, active listings increased 11.24 percent to 7,629. This is still about half the average number of listings for September (15,453 from 1985-2022) and significantly below the record high of 31,450 in September 2006. The median days on the market increased by 27% in September to 14 days, indicating that sellers might be starting too high, causing the home to sit on the market longer.
The realtors association suggests sellers planning to list homes now or in the next few months prepare by getting pre-inspections of the roof, air-conditioning, and sprinkler systems before snow falls. According to market trends committee member and realtor at Mile Hi Modern, there are nearly five months of inventory for homes in the $1.5 to $1.99 million range. With homes priced over $1 million taking 34 days to sell, buyers have more negotiating power and could get their dream home under the asking price.
Overall, the Denver Metro real estate market is still a seller's market, but first-time homebuyers have opportunities to negotiate and get a great deal on their dream home. With the right preparation and pricing, sellers can still get a good return on their investment.
