The Denver Real Estate Market in August 2022
Denver buyers now have more time to find the right home and more leverage to ask for concessions (money towards closing costs)—even submit an offer below asking. In fact, homes closed for an average of 99.4% of their asking price last month compared to 102.5% in August 2021.
What a difference a year makes!
In addition, there are far fewer bidding wars and appraisal gap coverage requirements. Agents are also engaging in more intense negotiations when an inspection report reveals issues. For buyers who are actively searching right now, today's interest rates just might be less stressful and problematic than many of the challenges that came up when it was a competitive and extreme seller's market.
Let's take a closer look. Last month, 3,694 new detached, single-family listings came on the market, a decrease of 18.9% compared to July. And 5,298 homes remained active at the close of August, a year-over-year increase of 114.6%. The average price decreased again from $778,793 in July to $744,589 last month, a drop of 4.4%.
However, it's not all bad news. Year-over-year, prices are up 8.1% which is still a healthy equity gain for those who purchased in the last year.
Days on market also jumped from 14 to 20. Looks like the days of 15-minute showing times are in the rearview! However, if inventory continues to drop, we could see days on market tighten up again. This also is an indication that sellers, along with their agents, should be very strategic about pricing if they want to attract an offer quickly. Looking at recent closings rather than historical data to determine a listing price is key.
Statistics for the attached market, such as condos and townhomes, are similar. In August, 1,476 new properties came on the market, a month-over-month decrease of 17.4% and the month ended with 1,641 listings still on the market. This was an increase of just 47.4% compared to 2021.
The average price here also decreased compared to July, coming in at $456,013. Again, compared to 2021, prices are up by 3.7%.
As we mentioned last month, it's now a time when both buyers and sellers are looking for quality real estate experts. At the national level, experts predict that 250,000 or more Realtors® will exit the market now that it has cooled. When it comes to making such a monumental financial decision as buying or selling a home, part-timers whose side gig is real estate may not be the best choice.
Next month, we'll be keeping an eye on falling inventory and decreasing prices. If sellers continue to hold off going on the market and lowered prices attract more buyers, the current market balance could tip yet again, causing prices and competition to heat up this winter.
To view our report on Denver real estate market stats for August, click here.
How to Get Your Home Ready for Marketing Photos
According to the NAR Profile of Home Buyers and Sellers for 2021, 96% of buyers who searched for a home online found photos to be useful. In fact, great photos maximize the number of potential buyers who will want to see your home, and most importantly, make an offer on it.
Prep for professional photography not only takes a good cleaning but two key components:
Decluttering – Removing extra stuff like mail, phone charger cords, toys and knickknacks, will keep eyes focused on the charm of your home and make every space look bigger.
Depersonalizing – Be sure buyers can imagine moving into the home by tucking away or packing up family photos, taste-specific art or decor, as well as personal care products.
Below is a list of how to prepare for photos space by space. These are quick fixes that can make a big difference.
Home Prep Checklist
- Turn on every light and open up the curtains or blinds.
- Remove small rugs and runners that hide your floors.
- Turn off all ceiling fans, TVs and computer screens.
- Clear the counters of excess and non-decorative items.
- Make sure there are no dishes in the sink or drainer.
- Remove photos, magnets and artwork from the fridge.
- Remove soaps, toothbrushes, medication, razors, etc.
- Fold and neatly hang up fresh, clean guest towels.
- Always check that the toilet seat and lid are closed.
- Put hoses, garbage cans, bikes, tools and toys away.
- Keep your lawn lush and landscape in good shape.
- Remove vehicles in the driveway and close the garage.
- Keep pets offsite or out of the way for the photoshoot.
- Make sure there’s absolutely no pet waste in the yard.
- Remove beds, crates, cat trees, food bowls, toys, etc.
- Make beds, fluff pillows and straighten throw blankets.
- Put all shoes, jackets and strollers neatly in a closet.
- Add a vase filled with flowers or a bowl of fresh fruit.
If you need further help or plant to move out before selling, you can always rely on your PorchLight agent to help you. Backed by an in-house team, design consultations and full staging can be provided depending on your situation.