Denver Metro Rain and hail storms did not dampen the Denver real estate market this June. While activity was noticeably slower than last year, buyers and sellers came together to navigate a changing marketplace. Bidding wars were down considerably, with the close-price-to-list price ratio at 100.23 percent market-wide. While some homes are still selling in a weekend with multiple offers, many others are sitting on the market for a few weeks with one or two price reductions before finding a buyer. The days of routinely putting a home on the market and watching it sell to the highest bidder in days are over.
El Paso County Buyers are far more discerning and they want to negotiate and feel as though they are getting a win, with rates hovering around seven percent and construction costs soaring. One contributor to the growing active listings is an increased number of deals falling apart at inspection. Sellers are taking note and willing to work with buyers who are keen to walk away from a deal if there are issues with inspection or appraisal.
Luxury Market The over-million-dollar price point continued to stay competitive. Buyers are not paying full price for properties over $1 million, but they’re close. The average close-price-to-list price ratio for properties sold above $1 million is 99.78 percent. Buying with a higher interest rate has slowed down the market, resulting in an increase in days in the MLS. One of the most interesting observations about the real estate market is how interest rates have decreased the incentive to move. Market-wide, there are 23.26 percent fewer properties that have hit the market year to date compared to last year at this time. That is not the case for properties over $1 million where we have only seen a 8.73 percent decrease. The cost of money and the way it flows is simply different for over million-dollar homeowners.
An important observation to note though is that we saw an increased activity at open houses across the front range. Visitors, not ready to jump into the market yet, are instead opting out of the rate game and waiting on the sidelines. This indicates there are many would-be buyers out there who will be ready to jump in once rates start to decline.
(If you have questions or want a more in-depth look into how this data can help you sell or buy let's talk!)