That’s right, summer is here!!! This is the time when a Buyer’s Eye is distracted by all that’s summer. This is the time when the weather is hot (Who wants to get in the car and look at houses?). This is the time when #SummerMalaise sets in and sellers get a little nervous.
If you think Denver’s Residential Market has drifted away from a Sellers’ Market; read on. Priced appropriately, prepped for the market place, and presented to the market so as to create a sense of urgency, new listings are still going under contract after the first weekend. Please, follow along…
|New Listing (1764) Just like last week, we received more New Listings than Pendings. Down below, you’ll also see and increase in Active Listing inventory.|
|Coming Soon (321) This is a strong number getting ready!|
|Back On Market (314) Wow, over 300 failed attempts. Sellers need to fix those inspection items in this new market.|
|Price Increase (163)|
|Price Decrease (1295) Pricing off of comps with 3.5% interest rates is too aggressive for this market.|
|Pending (1617) This is a very strong midseason number. It is still a sellers’ market.|
|Closed (1338) This seems to be off a little bit. I would have expected something near 1,500 here.|
|Expired (121) Sellers giving up?|
As you can see above, Denver’s Sellers’ market is maturing. Buyers are getting a second look at listings, sellers do not always have multiple offers to choose from. “The times they are a changin’…”
Below, let’s look at the total inventory numbers of Active Listings in the 11 counties surrounding and including Denver.
This chart tells us of the total active listing inventory over the last 10 years. Take note, at the end of May, 2022 we had 3,719 Active Listings, but at the end of May, 2020 we had 2,851; quite a jump, but still nothing even remotely close to May, 2020 with 7,504 Active Listings. What I’m trying to present here is nothing short of insight. Granted, we have more listings active, but only marginally more and nothing close to two years ago.
LSS, This is a time to reflect on your neighborhood choices if you are a buyer. If you are a seller; Condition, Appeal and Pricing will be critical. As we move forward, none of us know how the market will react to increasing interest rates. The rule of thumb has always been for every point rates go up, 10% of buyers in the market drop off. Are we close to seeing 30% of buyers drop out? Time will tell, time will tell.
We had a listing come on the market this last weekend with two written offers over List Price and north of 20 showings. We had another listing attract only one showing on Saturday and only one showing on Sunday. WE will watch this Bifurcation mature in our market in the weeks to come and report back to you…
Please keep in touch, and will too…tc