MyTownCryer

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

Good Morning Everyone,

This morning, I will show you how The Buyer in this market has taken the lead position. Additionally, I will show you how a seller can keep their equity in tact. The Denver Market has flipped from Seller to Buyer.

This week’s report of Denver’s Market over the last 7 days looks good to buyers, but it causes some fear in the hearts of sellers. The seller finally gets their house on the market, and then over the weekend, 1, 2, or 3 new listings come on the market down the street and around the corner. Buyers now have sellers competing for their attention, and that has become the Price Improvement Strategy. PIS Makes sellers angry. “I gave up everything to buy this house 5 years ago, but now, buyers are doing all kinds of inspections, examining everything”. Asking for Credits, Price Reductions and Repairs, the buyer is now in the catbird seat.

Let’s take a look:

We hit 9,320 Active Listings this week. In the last 10 years, we have not seen a number this high. Last year at this time, we were at just under 6,600 Active Listings. As you observed above, as long as we have more New Listings, and fewer Closings, Inventory will continue to rise. More inventory only serves the buyer at this point! Keep in mind, based on weekly closings this is just shy of 8 weeks of inventory. 2 Months supply has never killed a market. We are still healthy, but we do have the flu.

The long trend of HIGH RATES is clearly taking its toll on this market. When someone at the lowest price range can’t get into the market, those subsequent transactions can’t take place. Long story short, until we see a break in interest rates (Affordability) we will continue to see inventory build. Remember, I am only showing you Single Family Residences. Attached and Condos are not in these numbers.

Summary of 30-Year Fixed Mortgage Rates (2015–2025)
Based on data from Freddie Mac, Mortgage News Daily, and other sources, here are the average annual 30-year fixed mortgage rates in the United States for each year from 2015 to 2025 (with 2025 data up to May):
2015: 4.09%

2016: 4.21%

2017: 4.04%

2018: 4.61%

2019: 3.76%

2020: 2.77%

2021: 3.27%

2022: 6.54%

2023: 6.67%

2024: 7.07%

2025: 6.88% (average through April 16, 2025)

In the spring and summer of 2022, when rates bounced off the lows of the year before, it has created chaos for the first time buyer. We went from a Seller telling us, “Why do I want to sell and appreciating asset, to a buyer telling us rates are too high” almost overnight, but it has taken 2 and half years to get here.

As we make our way toward the light at the end of tunnel please remember, we are out here everyday working for our clients. Please don’t hesitate to learn from our experiences and our experience. Every buyers’, and every sellers’ situation if different. Let’s make a plan together.

TheCryerTeam@Kentwood.com

Many our clients, if not all, will remember me saying, “It’s the Catharsis of the Process.” A cleansing if you will. A buyer will have different emotions than a seller, but on both sides of the ball, intense emotions are eventually released which make the process more understandable. Right now, in the Denver Market, there are a lot of pent up emotions. Buyers are fearful of the next phase of this market, and Sellers are stuck wondering what happened to the last phase of this market.

Dee and I have been through many market cycles together. In the late ’70s we saw rates skyrocket. In the mid to late ’80s, we watched the Savings and Loans on every corner taken over by the RTC. In the ’90s we saw a return to normalcy to some degree, and then as we turned the corner with “Y2K” we were off to the races. You could simply tell the lender what your Earned Income was and get a loan. Well, by 2008, we know how that story turned out. In 2010 we had 25,000 active listings, today we have around 10,000. Still nothing to brag about, but every market is different!

So, let’s jump right into what happed in the last 7 days in Denver SFR Market. We report on single family properties in these stats, and we cover the 11 counties in close proximity to Denver which pretty much defines Denver’s MSA.

This week we observed a lot of pin action. We are into the Selling Season for 2025, but it is just different than last year. The pins are moving, but not at the pace or volume we would like to see.

So, what have we learned from the last 7 days? Like so many years past, Supply is growing, Demand is not keeping pace, and the Ratio of Closings to Inventory is leading us toward more Supply, and not the favored Shortages of years past.

Up next, What does the Total Supply of Active Listings look like?

Last year at this same time, we had only 5,590 Active SFRs on the market. This morning, we have 7,762 Active Listings. On a percentage basis that’s an increase of 38%. Wow, that is a huge increase by percentage, but for a MSA of 3.25M residents, this is still not a lot in shear numbers. I’m not saying this is a good thing, but it is certainly not a nightmare either.

We can’t think of a life change affecting one’s level of homeownership to which we haven’t assisted. Do you want your friends over, do you want your family around, do you want to have fun in your home? A good plan, leads to good decisions, and good decisions lead to a fun happy experience in life. More than ever in this market, you need an experienced Realtor by your side. We are here for you!

TheCryerTeam@Kentwood.com