Buyers, and sellers for that matter, have been adjusting to high-interest rates as they navigated...
In the Greater Denver real estate market, the month of May brought a substantial influx of new listings, bolstering inventory levels to the highest we've seen in May since 2014. At the same time buyer demand slowed, pushing us into our retraction phase earlier than usual this year. Traditionally, we see increases in appreciation from January through June, but this year, the market peaked early due to the high inventory levels. This combined with a softer buyer pool caused prices to decline instead of increase as expected.
In the coming months, buyers may find a prime opportunity to negotiate, with concessions becoming more common and sellers more willing to address inspection issues to close deals. While there are differences across price points and parts of town, the data is positive for buyers.
Here are a few insights to help you navigate as we enter the second half of the year in the Greater Denver Metro real estate market:⠀⠀⠀⠀⠀⠀
- 🏡 Increased Inventory - Active inventory grew by 11.5% from April to May, with 5,495 units for sale. More options mean better chances to find a home that suits your needs.
- 🛍️Less Buyer Competition - While we’re still seeing some competitive situations, buyer activity overall last month was down. Pending transactions decreased by 3.8% from April to May.⠀
- 📉 Declining Prices - Central Denver median sold prices have stayed steady since November 2023 at $900,000. However, the greater metro area saw median sold prices fall by 1.4% to $652,500 in May. This trend suggests a slight softening in the market.⠀⠀⠀
- ⏳ Concessions are Prevalent - In May, 57.7% of all closed transactions reported concessions averaging just over $9,200. The overwhelming majority of these concessions were reported to be used for buyer’s closing costs or seller points paid to buy down the interest rates.
You can get an instant download of the my buyers guide with TONs of tips for buying homes in the Denver metro area by clicking here. The guide includes details on the home-buying process, interactive neighborhood maps, public and private school info, and much more.
If you're in the market to buy/sell a home or know someone who is, let’s connect! I'm happy to share market resources, vendor referrals, or anything else that would be helpful in your journey.
Michelle Fitzgerald
Real Estate Broker, Realtor®
phone: 970.215.8455
email: michelle@michellesellsdenver.com
Instagram: https://www.instagram.com/michelle_sellsdenver/