Home prices held strong and remained relatively flat, despite a seasonal slowdown with inventory down 14% and days on the market up 21%.
Still working through both sides of a market adjustment, the average list price held relatively flat while homes closed even more below the list price.
While trending downward the past few months, inventory is up 178% from this time last year and there are great homes available for purchase.
No two people see a rainbow the same way. It has something to do with light refraction and viewing angles and an allotment of other scientific factors. The point is, that same wondrous rainbow you pause to observe, looks slightly different to the person standing right next to you… and to everyone else.
Apply that to anything and it will hold true, including the housing market. Your viewing angle is influenced by your personal situation and who you listen to. The challenge is disseminating the countless “sources” of information (and misinformation), which can be easy to get lost in. Forget the rainbow, you find yourself staring at the clouds.
Knowing the market means knowing where to find the opportunity for you and then how to take advantage of it.
What the Numbers Say
The market has slowed here in Denver Metro and that is to be expected. Tis the season, after all. Inventory is down 14% and days on the market are up 21% (on average). Buyer interest levels have waned with the holidays and more than half of sellers find themselves reducing list price.
Even so, influenced by comps from the spring, when the market was going bonkers, homes are being priced on average for more now than they were then. (This data point fascinates me and is one I watch closely.)
The result: homes closed on average $11,237 under list price in November.
Sounds pretty gloomy, right?
Well, maybe not. Through all that, home prices remained relatively flat (down 0.2% on average). In other words, despite the seasonal slowdown, higher interest rates, and everything else going on, home prices held strong. Though down from the peak earlier this year, Denver Metro remains nearly 5% up over last year, is up over the previous year, and so on.
What It Means for You
Most homes have a healthy amount of equity while buyers are buying into what has proven to be a resilient market. Shoot, interest rates have even come back down a little.
There are great homes available for buyers with the bandwidth to look now. Waiting for the spring, when other buyers are looking, means greater competition and higher prices. It may also mean higher interest rates.
Sellers can find room to shine in a market with decreasing inventory levels. Make small fixes, have it staged, take great photos & video, price conservatively, and be patient. There are buyers for your home.
Of course, life moves quickly and priorities change, especially during the holidays. Now may not be the right time and that is ok. I would just hate to see anyone waiting out any market “shift” for the sake of waiting it out. That should never be the plan.
Let’s talk and see what that opportunity is for you and how you can best take advantage of this market.
While everyone is focused on the clouds, let’s get you focused on the rainbow.
Inside the Numbers
Comparing Close Price to List
While the average list price and close price remained relatively flat, homes closed for more under the list price than in previous months.
Monthly Inventory Movement
While inventory continued its seasonal drop (down 14.2%), current levels are 178.2% higher than at the same time last year.
Data source: DMAR Real Estate Market Trends Report. I am a member of the DMAR Market Trends Committee which compiles and publishes the report.
The Denver Metro Area encompasses 11 counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park.