Despite making headlines over the past several months as one of the nation’s hottest real estate markets, Denver is finally experiencing a slowdown. The residential real estate market in the metro area is simmering down from its previously scorching status.
This late summer cooling should by no means serve as a cause of concern for sellers in the Denver Metro Area, though. The Mile High City remains overwhelmingly popular, and buyers are still vying for their chance to own. The difference between the market we're in presently and the market we saw earlier this summer is that buyers now have a fighting chance of getting an offer accepted.
Buyers had 8,072 New Listings to choose from in July, a 6% increase over the prior month. Between June and July 2015, there was a 19% increase in Active Listings and a 5% drop in listings that went Under Contract, signaling a softening of the market. Many buyers who attempted to buy in April, May or June without success have the opportunity to go under contract this month.
TRELORA Showing Agent Eileen Stout has seen a noticeable drop in the Denver Metro Area's real estate activity. Something as simple as the number of business cards left by real estate professionals at an Active property is indicative of the market's temperature:
Things are still undeniably competitive, but exasperated home shoppers should be able to take a deep breath and find comfort in the fact that we're shifting toward some semblance of a balanced market. Buyers will be able to submit reasonable offers, as opposed to coming in $10-20K above the asking price.
Sellers who list their homes in August will undoubtedly notice the market slowdown. Homes will spend a little more time on the MLS and sellers will receive offers closer to asking price. Sellers will need to alter their expectations slightly as we inch toward fall. It's important for homeowners to take in a healthy dose of reality this late into the sumer, which can be difficult to do after hearing countless stories of homes selling in a weekend (or even an afternoon). An extra day or two on the market should be seen as inevitable, but rest assured that your home will sell for a great value: the average sold price has increased 11.7% over last year.