The past few years have launched Denver home buyers into a frenzy —and no wonder. The number of houses available to meet demand has been akin to offering a herd of elephants one bag of peanuts; there just hasn’t been enough to go around.
This has led to deep-seated frustration, as buyers scramble to snap up homes before prices and interest rates rise, pushing them out of the market.
But lately, we are seeing a decided softening of these conditions. We sense a little breathing room in a market that’s finally starting to moderate.
A recent Denver housing report showed a 15% increase in active listings over the prior month, a bright spot after years of extremely tight inventory. Meanwhile, we are noticing a slowing in the crazy bidding wars of previous months. And we are also seeing price reductions as sellers testing the market’s limits realize they have overreached.
Denver Metro Association of Realtors (DMAR) reported similar findings in July, noting that “days on market are increasing as well, with many homeowners lowering their prices in order to attract buyers.”
“Signs are pointing to more balance in the months ahead,” noted DMAR Market Trends Committee Chairman Steve Danyliw, “as sentiments amongst REALTORS is that the days of an extreme seller’s market may be behind us.”
In another indication of the market’s long-term viability, the housing markets in three Colorado cities ranked among the top 10 healthiest in the nation, as reported by the website Smart Asset. The study explored four elements when designating a healthy market: stability, affordability, fluidity, and risk of loss. Colorado Springs ranked 3, Aurora ranked 7 and Denver came in at 9.
By the way, lest you worry that this newfound moderation means that the bubble is about to burst on the housing market, Danyliw reassures buyers this is hardly the case: “Remember, a transition to a balanced market doesn’t mean a bubble is around the corner.”
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