What has happened to the Denver Real Estate market ? It is a good question, but as best I can tell 3 things:
The multiple offers we had in Denver this spring have caused buyers to be skittish about getting into a bidding war, and interest rates got so low for a while, then rose about 1%; not a lot; but any excuse not to do something is a good one for a nervous buyer.
Denver’s average asking price of homes got higher faster than the buyers liked, therefore home buyers have started to feel they were priced out of the market. Buyers do not like to “low ball” an offer in Denver as it is “embarrassing”.
This year we have had a season of fires and floods here in Colorado. Some folks are distracted by that news much as I have been! I closed a transaction last week where a supplemental inspection for flood damage had to be done, in the Cherry Creek Area of Denver (no flooding there). It was required by the underwriter at the mortgage company because of the FEMA disaster declaration. In the past there were homes we could not get insurance on because of the fires in the state. This distraction will fade for most of us.
What is my upshot on the current Denver Real Estate market condition report? Things have not really changed, and for sellers who want to wait till spring (February/March) it could be worth the wait. SPRING will bust out all over again as the supply is still low. Buyers on the other hand may make their own situation worse by waiting further. They should take advantage of the sellers in Denver who have not sold in 30 days like folks did this last spring and the historical interest rates now available. But it seems every Realtor and loan officer tells you it is a great time to buy a home. It is my sincere opinion that this is the best opportunity Denver Home Buyers will see for many years to come.
Finally; sellers and Realtors need to be honest with themselves about the prices they are asking for their homes in Denver or Littleton or Highlands Ranch, especially at this time of year, as ultimately that is what will sell a house.