Based off current trends in the Denver metro area, it appears the housing market here is experiencing a shift towards a buyer's market, with a decline in closings and an increase in standing inventory. Buyers have more options, and homes are spending more time on the market, allowing buyers to carefully consider their decisions.

Last November, median home prices experienced a 3% month-to-month decrease, and nearly half of the homes that closed had a price decrease. This indicates a market where buyers have gained more negotiating power. Considering the seasonal decrease in buyer activity and the potential for increased activity as mortgage rates normalize below 7%, it could be seen as a favorable time for buyers.

According to the data by REcolorado, buyer activity experienced typical seasonal decreases approaching the winter months. Closings were down by 9% compared to the previous year, marking the third consecutive month of month-to-month decreases. Despite this, home buyers executed contracts on 2,678 listings, reflecting a 3% increase from the previous year. Economists anticipate a surge in activity as mortgage rates normalize below 7%.

The standing inventory, representing the number of homes actively available for sale at the end of the month, has nearly reached pre-pandemic levels. Homes are spending more time on the market as buyers carefully evaluate their decisions. In November, homes were active in the REcolorado MLS for more than 3 weeks before a contract was secured.

While median home prices remained relatively stable during the second part of the year, November saw a 3% month-to-month decrease. Approximately half of the homes that closed in November had a price decrease, with homes closing at a median of 3% less than their original list price. This shift indicates buyers gaining more leverage in the market.

As the weather starts to warm, the market in Denver – and just about everywhere else – will become more competitive. Is now the right time for you to become a homeowner? Give Metrowest a shout and we’d be happy to review your options and opportunities!