Balance of power shifting in metro Denver’s housing market

Hot real estate market starting to cool allowing buyers to take back some power

By|| The Denver Post

Sellers have remained in firm control of metro Denver’s housing market for four years, with inventory shortages, quick sales and escalating home prices par for the course.

The imbalance has lasted for so long, it is hard to remember what a more balanced market looks like. But agents warn that things are finally moving in that direction.

“In comparison to the last four years it feels foreign,” said Kerron Stokes, a broker and Realtor with Resource Group at REMAX Leaders in Centennial. “But the normalization that we are going through is still better than the conditions in most of the country.”

In June, metro Denver’s housing market began to show signs of coolingafter a hot run at the start of the year.  More sellers had to drop their asking prices, fewer buyers attended showings and made offers, and homes took longer to sell. From record highs reached in May and June, prices have come down 4.9 percent.

Some wrote that off as the usual seasonal slump coming early. Things would rev up again in January. repeating the pattern of recent years. But in September, home sales fell hard despite a lot more properties on the market.

That disproved a common explanation that a lack of inventory was what was holding back home sales in metro Denver.

“The amount of showings per listing is dropping. The days on market are increasing. It is telling us that there are fewer buyers and less activity,” said Steve Danyliw, chairman of the market trends committee at the Denver Metro Association of Realtors and a Denver real estate agent.

Last month, there were 3,989 single-family homes and condos sold in metro Denver, a drop of 28.9 percent from August and 20.2 percent from a year earlier. The last time so few homes sold in a September was back in 2012, according to a report Wednesday from DMAR.

The inventory of homes available for sale shot up 7 percent from August to 8,807, the highest number available since the fall of 2013, when the Denver market was starting to take off. Normally, the number of homes available for sale drops slightly in September

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Phone: 720-625-1688
Dated: October 25th 2018
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