Pending sales, new listings, and active inventory all increased month-over-month but are still down compared to this time last year. Average days on market increased month-over-month, and closed sales decreased showing that the market is still moving a bit slower than we saw earlier this year.
August’s vital statistics for all homes – detached single family (DSF) and attached single family (ASF) combined – included:
- The average price for homes was down 0.25% compared to the previous month and up 4.88% from August 2022.
- The average days in the MLS increased 13.04% from the prior month and are up 36.84% from a year ago. The median days in MLS increased from 9 days to 11 days month over month.
- Active listings at months-end were up 8.87% from July and down 1.17% from this time last year.
As activity remains slower than we saw earlier this year, and inventory continues to grow, we are getting closer to a balanced market. This is giving buyers and sellers more equal footing. The median days on market increased to 11 days which may seem like a small jump, but this means some homes are sitting on the market for 70 days or more. As a result, buyers are increasingly interested in negotiating on price and receiving concessions to buy down their interest rate. However, it’s worth mentioning that we are not seeing a significant shift in negotiation dynamics, as the list-to-close price ratio remains in the 99th percentile. For sellers, pricing correctly is more critical than ever. Homes that are priced at market value or below are still selling quickly and may even receive multiple offers. On the other hand, homes that are slightly overpriced are sitting on the market until the price aligns with market expectations or the perfect buyer emerges.
For serious, qualified buyers, this market presents a great opportunity. You have the ability to negotiate on price and terms, especially when dealing with sellers whose properties have been on the market for an extended period. Additionally, in some cases, you may even have the opportunity to assume the seller’s loan at a much lower interest rate. If you need any advice or assistance navigating our real estate market, contact me today at 303.710.5817 or firstname.lastname@example.org I am never too busy for your referrals.
This update is based on information provided by the Denver Metro Association of Realtors® for the period of August 1, 2023, through August 31, 2023, for the following counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.