State of the Market | October 2023
Mortgage rates continue to hinder the real estate market as we head into a slower time of year for home sales. With rates in the mid-7% range and no expectation of near-term relief, the market has gotten tricky no matter which side of the table you're on.
Buyers are squeezed by affordability constraints while sellers are seeing their homes take longer to sell and at lower prices than they might have fetched in recent years. Since most sellers are also buyers, many have accepted that (for now) their best option is to stay put.
Though we anticipate a slower market and softening home values in the months ahead, we're still seeing plenty of competition for turnkey homes in quality locations. Earlier this week our clients made a strong, all-cash offer on this Highlands Ranch home, but after receiving 8 total offers, the sellers accepted an offer ~10% above the list price. Well-priced, quality homes are getting all the attention!
In the Denver Metro area, home prices were flat in September (MoM) and a hair above the same month in 2022 (+2%). While the number of new listings added to the market fell in September (down 13% YoY), the total number of active listings rose for the 7th straight month.
This is, in part, because homes are taking more than twice as long to sell as they were in the spring--up from just 6 days in May to 14 days last month.
Mortgage rates have risen about 500 basis points since September 1st and, today, are sitting around 7.6%, according to Mortgage News Daily.
The Bottom Line
Buyers: Homes are taking longer to sell! Don't be afraid to look at properties you ignored when they first hit the market! Some are seeing significant price reductions--maybe they're entering your sweet spot.
Sellers: You're still killing it! You've got equity coming out of your ears. But the easy money might be behind you! And if you're going to list your home, you will sell faster for more money by investing a little bit of cash upfront. Don't skimp on home maintenance, staging, and landscaping in any market, but especially in today's.
Thanks so much for reading!
Best,
Jen and Chad