Denver’s housing market has experienced a major drop in home sales over the past few months.
According to the Denver Metro Association of Realtors, the number of homes sold in the metro fell to 2,849 in September, down more than 11% from August, and 21% from a year earlier.
Experts report that’s the lowest level of home sales since September 2008 when the U.S. financial system was on the verge of collapsing.
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“There's a lot happening right now. So, for sellers, it's not the best market. For buyers, there are some amazing opportunities out there right now,” April Denmon, owner of the Denmon Group and the co-owner of the Gratitude Group, said.
Denmon said there are about 22,000 homes for sale in the Denver metro.
“In April 2021, we had 912 houses on the market. Today, I say we have 22,000 houses on the market…so a completely different market. Interest rates were different then too,” Denmon said.
Denmon said current mortgage rates between seven and eight percent, are leading to higher monthly payments causing some buyers to be hesitant to purchase a new home.
“Right now, we're seeing homes maybe sit about 31 days, 41 days on the market. If your home is overpriced, you're going to see prices going down. Last month, we saw about 64% of home price reductions. Also, concessions are a big thing right now. Sellers are having to give away concessions. Last month, we saw about a 71% of sellers getting concessions,” Denmon said when discussing the Denver-metro housing statistics.
Denmon said sellers are also not getting as many showings.
“In 2023, we were getting at least nine to 10 showings while properties were on the market. And now you're lucky if you get five showings," Denmon said.
Denmon said across the U.S. cities are experiencing a drop in home sales and it’s not impossible to sell a property sellers should be prepared to be patient.
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