How is the housing market as we end the summer with the usual rush to buy homes and move into them before the kids settle into their new schools for the fall school year?
Based on Colorado Association of REALTORS statistics,… October brought deep dips in the pending sales and sold listings – any where from -20 to -33 percent. The good news is that mean the inventory of home options increased. That is good because the inventory of active listings slipped from August to September. That includes the seven-county Denver metro area and statewide. That is not to say that it is not much better than last year’s inventory in September 2021. Realtors, however, state that this does not describe a balanced market that would hold the supply for the next four to six months.
Regular single-family homes in the state saw a small decrease in prices, and the more affordable townhouse or condo market saw median prices rise slightly by 1.2% statewide. That being in the $415,000 range. Sellers are back to considering prices and/or offering buyer concessions
Boulder County, Kelly Moye, Colorado Realtor, Boulder/Broomfield-area REALTOR®
We are in a ‘Tornado’ market, a phrase coined by my REALTOR® colleague Frederick Warburg. It’s a market where, ‘one home trades hands briskly while other, similar properties languish.’ The statistics show a continued brisk market despite recent interest rate fluctuations, with 10% appreciation since the beginning of the year and a healthy 31 average days on market. But a view from the ground tells a different story. Many homes are listed, price reduced many times, with a final sale much lower than the seller expected. Others are experiencing multiple offers and enjoying over list price premiums. Officially, our sales price/ list price ratio remains at 103% but many sellers are not having that experience.
LYONS AREA: Dan Siddall, Gateway Realty
Things have definitely shifted in our market, but is nowhere near the doom & gloom that is being projected by the national media. To illustrate, in the greater Lyons area market there are 11 single-family homes that have closed in the past 90 days and there are currently 8 single-family homes on the market, plus two that are currently pending sale. This means that at the current rate of absorption there is approximately a 60-day supply of homes available.
What we have noticed is that sellers that have priced their homes based on the craziness of the spring market are finding that the market has returned to the levels of late winter. We have all heard the crazy stories about homes getting bid up $100,000 and $200,000 and more above their asking prices last spring. That is definitely no longer the case; however, the demand is still there for homes that are priced at levels previous to that.
The recent rise in interest rates has definitely hurt the entry-level segment of the market; however, it is not a huge factor in our market because of the extreme lack of entry-level priced housing, sad to say…
As an example, a buyer attempting to purchase a home in the $500,000 range, has found that their mortgage payment has gone from approximately $2,500 per month up to $3,000 per month. This is a huge and unsurmountable increase for many buyers. By contrast, a buyer purchasing a home in the million dollar range, which has become customary around here, is going to be, in general, spending a much lower percentage of their income on a mortgage payment, so they will not be as affected by rising interest rates.
Obviously it remains to be seen what the future will bring; however, as of this writing, our market looks to be in pretty good shape.
NOTE: The federal reserve/government increased the interest rate by 3/4 point on November 3, 2022 in an effort to slow inflation. This is the 6th big increase this year, and the highest in 14 years.
STATISTICS WERE PROVIDED BY: The Colorado Association of REALTORS® is the state’s largest real estate trade association representing more than 30,000 members statewide. The association supports private property rights, equal housing opportunities and is the “Voice of Real Estate” in Colorado. For more information, visit https://www.coloradorealtors.com.