How’s the Denver Real Estate Market Right Now?
If you’ve been wondering, “So… how’s the market?” — the answer is more nuanced than simply good or bad.
The Denver market is moving at a slower pace. Pending contracts are 11.7% lower year over year, while pending listings are down 3%.
The good news? Buyers are finding better prices and seller concessions. Sellers who adjust their strategy can still attract motivated buyers.
A Strong Start to the Year
While the market has become more challenging, activity remains steady. New listings increased 2%, giving buyers more options. Closed listings decreased 2%, while pending listings declined 3%.
Days on market also decreased by 4 days. Weeks of inventory remained unchanged. These numbers show that the market is moving, but buyers are becoming more selective.
What’s Happening with Interest Rates?
Interest rates continue to influence buyer decisions. Higher monthly payments have made affordability a major consideration.
As a result, buyers are looking beyond the list price. Seller concessions can help reduce monthly payments and make a home more affordable.
Inventory Is on the Rise
More inventory is creating opportunities for buyers. Builders with standing inventory are one area worth watching.
Homes that have been on the market for 120 days or more may also offer negotiating opportunities. Properties with two or three price reductions could be worth a closer look.
Is It a Buyer’s or Seller’s Market?
Today’s market is becoming more favorable for buyers. Buyers have more opportunities to negotiate on price and terms.
Sellers can still find success. The key is understanding the competition and positioning the home accordingly.
What This Means for Sellers
Sellers need to be strategic in today’s market. Pricing too high can lead to longer market times and additional price reductions.
Strong marketing and competitive pricing can help a home stand out. Offering concessions may also help attract buyers who are focused on monthly payments.
What This Means for Buyers
Buyers may have more negotiating power than they have had in recent years. Lower prices combined with seller concessions can create significant savings.
In some situations, buyers may be able to negotiate 5% to 8% through a combination of price reductions and concessions. Builder standing inventory and homes with longer market times are good places to start looking.
The Bottom Line
The Denver market is slower, but that does not mean opportunities have disappeared.
Pending activity will be an important metric to watch over the next several months. A continued decline could mean fewer closings ahead.
For buyers, this market can create opportunities to negotiate better prices and terms. For sellers, proper pricing, strong marketing, and thoughtful concessions can make a significant difference.
The market has changed, but there are still deals to be found and homes to be sold. The right strategy matters more than ever.
