The Denver housing market “is on a comedown from the pandemic buying,” says Milena Joy, global real estate advisor at LIV Sotheby’s. Inventory has remained low over the last few years because sellers don’t want to lose the historically low rates they locked in during the pandemic, Joy says, and many of the sellers putting homes on the market right now have extenuating circumstances necessitating a sale. Yet despite lower inventory, the average days on market is hovering around 40. What’s going on?
“Buyers are being really picky,” Joy says. “A few years ago, people were buying sight unseen, but now they’re taking their time with inspections and coming with a list of demands and, in some cases, terminating contracts.”
While Denver still has a lot to offer newcomers and would-be homeowners, Joy believes “it’s important to have a hot house and not just be in a hot market.” A “hot house”—one that is move-in ready and priced well—can still receive multiple offers and be sold within days. But homes that aren’t priced well or have cosmetic or structural issues are sitting.
In some cases, Joy says, desperate sellers have parted with homes for less than they purchased them for. To help attract buyers, more sellers are offering rate buy-downs—contributing to the buyer’s interest rate for the first few years of the loan to make monthly payments more affordable.
After years of a strong seller’s market, Joy sees the Denver market moving toward balance. Buyers are interested in single-family homes for the space and lack of HOA fee. Among the city’s most sought-after neighborhoods are Cherry Creek and East Wash Park. Cherry Creek, with several new developments in progress and plenty of walkability, continues to draw interest. On the opposite side of the city, communities like Solterra are gaining popularity for their access to trails and proximity to I-70, all while offering a true neighborhood feel.
“People are still moving to Denver for the lifestyle,” says Joy. “It will continue to be a lifestyle city.”
