September 2023 Market Report

The Denver Metro Area historically leads National trends, according to DMAR's Market Trends Committee.

While the market was unpredictable this spring, we are seeing the traditional seasonal slowdown in residential sales as fall takes over.

This month's data indicates a shifting market. New listings dropped 5.92 percent to 4,589 homes, while active listings at month's end rose 11.24 percent to 7.629 listings. Pending sales also fell 9.29 percent, closed sales declined 20.88 percent and, as such, sales volume declined 20.88 percent. Months of inventory jumped 47.24 percent to 2.4, while median days in MLS jumped 27.27 percent to 14 up from 11 days last month, which notably is a 12.5 percent decline year-over-year. I want to point out, however, that while inventory is growing, the median price point also grew 0.69 percent up last month to $585,000, which is also an increase year-over-year of 0.86 percent. Additionally, the close-price-to-list-price ratio was up 0.31 percent year-over-year to 99.19 percent.

While these are marginal changes, this small indicator showcases that prices are still strong in the Denver Metro Area. Buyers aren't generally haggling on price; however, they are asking for concessions, which is a data point this report does not track. As most Realtors® know, concession requests from buyers have been on the rise since the beginning of the year as they have made it easier for buyers to navigate this market.

Buyers and sellers continue to find common ground and people are moving every day for a myriad of reasons. One group that is leading the charge with new loan applications is first-time homebuyers. They aren't tied to historically low interest rates and feel the freedom to move as the current interest rates are all they know. Additionally, they understand that purchasing a home is a faster way to build wealth and gain equity as opposed to paying their landlord's mortgage. They are keenly aware that properties are sitting on the market longer, and sellers are often making multiple price reductions, providing first-time homebuyers with the leverage to ask for concessions.

In many ways, this is the perfect market for first-time homebuyers to seize opportunities. While interest rates are high, these buyers can negotiate instead of jumping into bidding wars where they might pay 10 percent over the asking price to secure a property like many did over a year ago.