Three key figures – 14, 99.19%, and 7,629 – shed light on the evolving dynamics of the Denver real estate market. The figure 14 represents the median Days in MLS (DIM), showcasing a notable 27.3% month-over-month increase. The 99.19% denotes the closed-to-list price ratio, essentially staying the course with a marginal -0.27% shift from the previous month. Meanwhile, the 7,629 points to the number of properties actively available, marking an 11.24% uptick month-over-month. These statistics are sourced from the recent Denver Board of Realtors October 2023 Market Trends Report.
The luxury segment exhibits more pronounced changes. Here, the numbers tell a story of 20 DIM (a surge by 42.9% month-over-month), 98.08% (holding steady with a -0.66% change) and 625 (a slight decline by 4.43% month-over-month). But there’s more than just numbers at play. The market landscape alteration is further emphasized by the resurgence of seller concessions, interest rate buy-downs for buyers, and the return of price reductions and relisted properties. Remarkably, such trends haven’t made a consistent appearance for years.
When considered individually, these figures intrigue. However, when combined, they unmistakably signify a pivotal turn in the market. So, what does this mean for those already engaged or considering a foray into the Denver real estate scene?
To quote Anna from Frozen – for the first time in forever Buyers have some much-need breathing room when it comes to leverage and negotiation, especially on homes that have been sitting for a while and/or have implemented a price reduction. As illustrated by the less-than-100+% CP/LP Ratio, buyers can pay less than asking price when negotiating an offer, as well as secure seller concessions for an interest rate buydown and/or repairs resulting from the inspection process. The longer DIM suggest that buyers have more time to think about a home before making an offer, which is also a welcome change.
Preparation, pricing, and patience are the three most important factors when listing in this changed market environment. It’s been a long time since sellers have had to do much of anything to prepare their homes prior to selling and it didn’t matter how homes were priced because they were almost guaranteed to sell for more. Now, there is more inventory available and buyers have more selection, and homes need to be properly prepared and priced realistically in order to attract attention from buyers.
However, patience is where most sellers currently stumble. Recollections of homes flying off the shelf, buoyed by multiple offers, may still linger. But that’s the past, not our present. Today, sellers should brace for potentially longer sales durations, especially if they haven’t optimized their property’s appeal and price for today’s market conditions.
The Denver real estate market is undoubtedly in a state of transition, and the indications of the market shift offer both challenges and opportunities for both buyers and sellers. With proper preparation, correct pricing and abundant patience, as well as effective negotiation strategies and a solid understanding of the current market climate, both buyers and sellers can be successful, and there are excellent opportunities to do so.
Considering a move in this shifting market landscape? Timing is everything. Reach out today, and together, we’ll evaluate if now is the ideal moment for you. Let’s make informed, strategic decisions tailored to your unique real estate goals.