I enjoy providing my clients with any kind of helpful resource or data I can, so as part of an ongoing series from Colorado Home Realty (CHR), I’m going to start sharing market recaps every month so you can know where we stand so you can make the best decision for you and your circumstances. Even if you’re not looking to buy or sell your home anytime soon, you might just like analytics and be curious about what the Colorado real estate market looks like. I’m going to share helpful stats like average sales prices, average days on the market and concessions all related to the Metro Denver market. Lets take a look at what happened in Metro Denver in January 2023:
Sale Price Trends:
- In Metro Denver, 51.2% of real estate listings have experienced a price reduction. This is down from a high of over 56%. Expect this downward trend to continue into the next few months which means the market will get more competitive for buyers.
- Average Seller Concession remains high at $5,908. These are on closed contracts negotiated in December. Expect this number to come down over the next 60 days.
- For Sellers: The market is beginning to heat up and compared to the last 3 years, days on market will remain longer and buyers will scrutinize their purchase options more. To maximize value on a home the key idea is preparation and likely we’ll see an increase in appreciation
- For Buyers: The lending market will continue to tighten. Get fully approved early in the process and consider purchasing sooner than later, before the spring market heats up. Right now, there is still time to negotiate price, inspection items, and seller concession. Those times will likely pass in the next 30-45 days.
Days on Market:
- The current Average Days on Market is 47.39. This is down from 55.67 just two weeks ago which means that the market is back to full capacity after the holiday season.
- The number of active buyers remains the same YoY, about 34% below the same time last year, but it appears that today’s buyers have been watching the market and are very serious when they make a move. Just last week there were 16,263 showings, just slightly more when compared to 2018 for the same week. This compared to YoY, and the same week yielded 24,481 showings.
- Inventory will likely remain lower through this spring due to the number of homeowners with low current rate mortgages and lots of equity in their homes. In a time when rates are still high, this matters. Since many homeowners don’t want to lose their current rate by selling, more active buyers could bring another rise of home prices.
- Inventory continues to decline as under contracts are outpacing new listings. This happens most years with February inventory often being slightly lower than January. The current inventory is 4,306 homes.
As expected, now that holidays have passed and most folks are back to business as usual showings are up, contract submittals are up and days on market are coming down. Lower inventory and high numbers of homebuyers impact inventory and home prices overall. This coupled with high interest rates, can impact decisions that both buyers and sellers make. Days on market is on the downtrend, as is price reductions and offers made below asking price. These are all tiny slivers of change at the moment, but we anticipate a more marked shift in these lag indicators as we move into late February and early March.
What do you think about these January market trends? Are you in the market to buy or sell your home? Call and text me at (720) 323-4176 or email me at [email protected]