Locational Obsolescence: This occurs when external factors reduce a property’s desirability due to its location. In this example, the house is on a busy street, which may deter buyers due to noise, safety concerns, or lack of appeal compared to quieter areas. This type of obsolescence is external (beyond the property owner’s control) and can significantly lower market value.

Market Shift: The buyer purchased during a low-inventory market (a seller’s market), where demand outstripped supply, likely forcing them to compromise on location (e.g., the busy street). Now, as a seller in a high-inventory market (a buyer’s market), there’s more competition, and buyers can be pickier, avoiding properties with locational drawbacks.

Let’s see what happened in the last week in Denver’s Single Family Residential Market.

We are just not closing listings like last year and the year before. This market is entrenched with resistance to current interest rates being too high. If a Seller has a low, low rate, they don’t want to move. If a Buyer can’t pay cash, and has to buy with a new mortgage, “rates are too high”. So, this is where we are, but wait, there’s more.

This is just one of the reasons inventory is increasing. As you will see below.

We currently have 9,424 Active Listings and we closed 1,001 listings last week. This gives us a 9.4 weeks supply. We clearly have moved into a buyers’ market.

If you have thoughts of buying or selling, let’s start early. Let’s discuss your goals. Let’s discuss your fears. Lean in on our experiences and years of experience. Let’s make it happen…

TheCryerTeam@Kentwood.com