Even with Rates Easing, Buyers Take Their Time
Several factors affected Denver real estate in September. There was the Labor Day holiday and families continued to adjust to a new school year. Mortgage rates eased, first in anticipation of the Fed cutting rates and then in response to an official reduction. Plus, it's an election year, which tends to drive consumer uncertainty and slow the market.
As for the market itself, late summer and fall are typically a slower time of year. Prices have been tempered for months while inventory has been rising. So, while these outside factors did affect strategy for buyers and sellers, we're yet to see massive changes in Denver real estate.
Perhaps, due to people being focused on the holiday and school, new listings of detached homes decreased by 2.25% month-over-month. And perhaps, with mortgage rates finally easing, pending home sales increased by 8.22% month-over-month and by 37.54% year-over-year.
However, at the close of September, there were 7,656 properties still on the market. That's a smidge above August and a significant, 40.68% higher than 2023 inventory. The median home price last month was $630,000 compared to $650,250 in August and decreased by 1.56% year-over-year. Days on market also increased by a day month-over-month and by 27.59% compared to 2023.
Libby Levinson-Katz, Chair of the DMAR Market Trends Committee, had this to say about the Denver real estate market:
"Homes are simply spending more time on the market and experiencing more price reductions before finding a buyer. This is a direct result of buyer demand waning due to higher interest rates and, to some degree, anticipation for the upcoming Presidential election. Many buyers who I am working with are simply waiting for truly the perfect fit before submitting an offer. They aren't willing to make compromises on a home they have to pay more for due to higher interest rates. When they do find the right home, even if a home is new to the market, they are eager to negotiate. "
Ultimately, Denver real estate remains a buyer-friendly environment, and that likely won't change until the backstock of home inventory decreases. That could be soon—many sellers hold off going on market during the winter and instead, wait for the spring when the market perks back up again.
So, the coming months are likely going to be a prime time for serious buyers to take advantage of lower rates while still having time to shop around, a good supply of homes to choose from, as well as more negotiation power.
As for attached properties, such as condos and townhomes, the numbers continue to respond to issues regarding HOA dues affected by increased taxes and insurance premiums.
New listings were up slightly month-over-month and year-over-year. Pending sales decreased by 9.71% compared to August and by 4.23% compared to 2023. Closed transactions also decreased by 20.93% year-over-year and total sales volume is down by 26.64% from last year's numbers.
The outcome was 3,469 active listings at the close of August, another big increase of 58.11% compared to 2023. The average time on market also came in at 45 days, which is 45.16% higher than the prior year.
Still, the median price for attached properties came in at $403,500 which is a small increase of 1.98% compared to the prior month yet 3.93% below the prior year. And sellers are continuing to close for below their listing price. Again, there are potential bargains to be found and room to negotiate but always work with an experienced real estate agent to look into an HOA's finances before making a decision.
Want to discuss your buying or selling strategy further? An experienced real estate agent can better assess the market and provide a smart approach, as well as negotiate for you along the way. A proven professional will have the expertise, connections, and resources to help you achieve your real estate goals. Choose your agent with care and don't skip out on proper representation.
Winterization Checklist for Homeowners and Sellers
Nothing shows how sturdy and well-maintained a home is than frigid winter temperatures and weather extremes. If you plan to sell this fall or winter, it's important that you take care of certain tasks to ensure your home remains warm, cozy, and attractive to potential buyers. Drafty windows or a damp basement can be big red flags that could cause your home to linger on the market.
And if you plan to buy a home in the coming months, investigating drafts and asking about fireplace inspections will be part of your due diligence when it comes to determining what home you put an offer on.
Winterizing a Home's Exterior
- Clear gutters and downspouts then do a quick sweep after the leaves are done falling.
- Hire a pro to inspect your roof for loose/missing shingles or flashing and repair as needed.
- Have a lawn expert blow out the sprinkler system and shut everything down for the season.
- Disconnect all hoses from your exterior faucets and attach an insulated hose bib cover.
- Close crawl space and other exterior vents to keep the winter chill out and the cozy in.
- Cut back weak or dead tree branches that could break and fall on your roof, car or fence.
- Cover or store outdoor furniture, grills and hoses in the garage, basement, or yard shed.
- Reseal decking to prevent water intrusion and damage from rain and winter snowfall.
- Get your chimney cleaned, inspected and repaired to prevent fires and harmful fume leaks.
- Before the snow arrives, buy a good snow shovel, salt or sand, and other winter supplies.
Winterizing a Home's Interior
- Have a pro service your HVAC, including the blower, motor, piping, and other components.
- Replace your furnace filter and continue doing so every 4-6 weeks throughout the winter.
- Seal drafts (with caulk/weatherstripping) around doors, windows, lights and switchplates.
- Clean dirt or debris out of windows tracks where it may prevent proper sealing.
- Test the fireplace flue to ensure that it operates properly and forms a tight, closed seal.
- Insulate your water heater/pipes if they're in the attic/basement or inside an exterior wall.
- Check the smoke and carbon monoxide detectors and replace the batteries if needed.
- Move furniture, rugs and other items blocking any heating vents to ensure proper airflow.
- Make sure ceiling fans turn clockwise so they push hot air from the ceiling down to the floor.
- Install a smart or programmable thermostat to control temps when you’re not at home.
If you need help with any of these tasks, reach out to your PorchLight agent. As your local resource for all things home, they can point you in the right direction of a reliable and reputable company.