The October report from the Denver Metro Association of Realtor (DMAR) is out, and it shows that home sales in the Denver area are slower than just a seasonal effect would account for. Even though there is still a relative shortage of houses on the market, other indicators such as more price reductions and more transactions falling apart and homes having to go back on the market, may be signs that the seller’s advantage in the market is softening.
Below is a summary of DMAR’s October 2017 statistical analysis of the state of Denver area housing activity:
DMAR’s October Market Trends Report
REALTORS® report showings of homes on the market are slowing and home sellers are beginning to reduce prices
Active listings in the residential market (single-family homes and condos) was at 7,586 total units in September, while the number of sold listings decreased by 21.58 percent compared to the previous month. The decrease in sold listings is greater than the 10-year seasonal average decrease of 10.1 percent.
Notably, even with the number of homes sold dropping, the market is still ahead of last year as year-to-date closings are up 3.22 percent over 2016.
“We’re starting to see a slowdown in overall housing market traffic even in the lower price ranges,” said Steve Danyliw, Chairman of the DMAR Market Trends Committee and Denver REALTOR®. “Inventory continues to be in short supply and nothing that we can see will change that in the immediate future.”
According to a sampling of DMAR REALTOR® members, showings are slowing down and home sellers are reducing home prices in order to get more traction. The report shares insights that escalating buyer demands during inspection are causing more homes to fall out of contract and come back onto the market. Furthermore, “back on market” and “price reductions” seem to be more common than “new listings” in MLS searches as of late.
If you are interested in buying or selling in Denver metro area, and have any questions about what this information might mean for you, please feel free to contact me!