Twice as Many Homes Are Taking Twice as Long to Sell In Denver
Homebuyers are finally breathing a sigh of relief. Denver market real estate statistics confirm that twice as many homes are taking twice as long to sell.
Buyers have double the homes to choose from. The crazy bidding wars and buying sight unseen that was business as usual last year are long gone. The average closed home price of April 2022 at $721,757 dropped to $661,335 in October. Representing a price decline of $60,422.
So while interest rates may be a concern, more reasonably priced homes are balancing out monthly mortgage payments. Check out this month’s market report video from realtor Sam Wilson.
Download a copy of the Denver Metro Association of Realtors October 2022 Data so you can follow along with the video.
Denver Housing Market Update
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Twice as Many Homes are Taking Twice as Long to Sell in Denver
Active listings at month end for October 2022 were 7290, which is +115.94% versus one year ago.
New listings at 3837 are down from the previous month by -26.7%. The average days in the MLA were 28 for October, which is twice as long as October 2021.
While new listings on the market typically slow during the end-of-the-year holiday season, homes are taking longer to sell, which means that available inventory is sufficient to meet buyer needs. Closed homes during October at month end were 3315, which is 45% of total active listings at month end.
The average closed home price of $661,335 is +8.22% versus a year ago. As a result, the Denver real estate market is no longer seeing price jumps of 10% or greater, but instead a 10% decrease from April of 2022.
Don’t Let Interest Rates Affect Your Desire to Buy or Sell
According to the DMAR report, more than one-third of American job holders can work full-time from home. This means that being near a brick-and-mortar job location is no longer necessary for many families.
Sellers are still insistent on overpricing their homes. As of October 26th, 58.2 percent of active listings reduced their asking price compared to 32.6 percent a year ago.
Overpricing is costly from a time perspective for sellers. For example, homes priced based on prices earlier in 2022 take twice as long to sell at 71 days versus homes priced at 36 days.
Sellers are now having to compete for homebuyers because homes are no longer flying off the shelf. For the first time since June 2020, month-end active listings outnumber month-end closed home sales. Twice as many homes are taking twice as long to sell.
Advice for Home Sellers
If you are selling your home, hire a realtor who will give you the real story versus what you might want to hear. Over-pricing means that your home will take longer to sell, and you will lose out to other homes in your area that are priced right. So, in the end, you may sell your home for much less than anticipated.
Buyers concerned about continued rising interest rates want to buy now rather than wait until the after-holiday season picks up in January. So, if you’re going to sell, find a realtor you can trust and put your home on the market today.
What to Look for When Buying a Home
Even with all of the current market changes, the traditional list of what to look for when buying a home stands the test of time:
- The location means access to activities you value, like parks, shopping, schools, or public transportation. Also, consider traffic patterns and noise, how close your home is to your neighbor’s home on the lot, and other things like barking dogs that may not seem initially like a big deal but can turn living in your home into a nightmare.
- Consider the immediate surrounding and access to your home. That hill that isn’t a big deal in the summer may be frightening to drive up or down in the winter when it snows. Stairs, fencing, parking cars in the garage or outdoors, and other considerations are essential.
- Be sure to check out the neighborhood at various times during the day, week, and weekend. Do neighbors keep their yards neat, or do you see broken-down cars and junk sitting in yards? Walk the neighborhood at night. Do you feel safe?
- In the new days of working at home, the number of bedrooms and bathrooms is critical. If you are a couple who works at home, offices may consume two bedrooms. Don’t assume you can add to a home to make more space. If not thoroughly investigated, city regulations, lot usage, and other considerations may make your dream addition a no-go.
- Is the interior design of the home dated? Are you looking at popcorn ceilings and colors from the 70s? Do bathrooms or the kitchen need updating? These are the most expensive rooms to renovate. If the price of the home makes the monthly mortgage stressful, it’s less likely that you will be able to complete remodels. Instead, ensure the property works for your needs today and in the future.
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There’s No Time Like the Present to Buy or Sell a Home in The Denver Metro Area
Are you considering buying or selling a home in the Denver Metro Area? Get expert real estate advice from Sam Wilson, who has more than twenty years of experience in the local market, and his team of realtors.
Work with a seller or buyer’s agent on the Sam Wilson Home Selling Team. If you are thinking of buying or selling a home, the team will share years of expertise to make the home buying or selling process a financial win that is as stress-free as possible.
The Sam Wilson Home Selling Team specializes in homes in the Denver Metro area, including Arvada, Aspen Park, Aurora, Brighton, Broomfield, Centennial, Conifer, Denver, Edgewater, Evergreen, Genesee, Golden, Highlands Ranch, Idledale, Indian Hills, Ken Caryl, Kittredge, Lakeside, Lakewood, Littleton, Morrison, Mountain View, Parker, West Pleasant View, Westminster, and Wheat Ridge.
Contact Sam Wilson today.
© 2022 Sam Wilson. All Rights Reserved. Articles by Pamela D Wilson
