The era of buyers making offers well over list price and waiving most, if not all, contingencies has come to an end in the Denver metro area, says Kristen Abell, team leader of the Abell To Sell Team at Compass Denver. Homes are now selling at asking price, whereas a year ago, they were selling for a premium of 1.3% above list price, she notes.
“Due to continued higher interest rates, buyers are still cautious and want to make sure they are making a sound investment in the right neighborhood,” Abell says. “Our clients are primarily coming from out of state for job changes or moving within the city due to major life events. Most are moving because they need to move.”
Some buyers are sitting out this market waiting for lower interest rates, while others “got tired of the pandemic bidding wars and moved back to their hometowns or decided to rent for a while,” she adds.
As the market begins to look more like it did before the pandemic, buyers aren’t being forced to rush into closings anymore. They have more time to complete the long list of to-dos that go with a purchase, completing inspections and negotiating items that need repair with sellers, shopping interest rates, and picking a lender who meshes well with their needs and can strategize given their budget. Buyers are doing more due diligence on their desired neighborhoods and prioritizing their must-haves in a home.
“On the flip side,” Abell says, “sellers have to know that they need to have their home in tip-top shape, ready for inspections when the right offer comes in.”
The Numbers
Active Listings
(June 2022-June 2023)
Down by almost 14%
Sales
(June 2022-June 2023)
Down nearly 21%
Average home price
June 2022: $706,864
June 2023: $707,047
Average days on market
June 2022: 11 days
June 2023: 22 days
