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Denver's red hot housing market balancing out, but experts say it's not a cooldown

Experts: Balance is good for both buyers and sellers
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Posted at 10:07 PM, Aug 24, 2021
and last updated 2021-08-25 11:17:06-04

LAKEWOOD, Colo. — Denver's red hot housing market is finally beginning to balance out, but don't call it a cooldown, experts say.

New homeowner Nicole Goodhew will be the first to tell you her new home isn’t perfect, but it’s getting there.

“YouTube is huge, and that’s where I get all my information,” Goodhew said. “They can teach you how to do anything: ceilings, floors.”

After getting beat out on couple other places, Goodhew found a home in the suburbs just west of the City of Denver. It’s a home she’s now renovating herself.

“Getting rid of the popcorn ceilings, adding wood floors throughout the main level,” Goodhew said.

She’s part of a new trend and a recent shift in Denver’s housing market.

“It’s still a seller’s market,” said realtor Joy Dysart with HomeSmart. “We’re not seeing quite as many showings. I would say that the feeding frenzy has certainly calmed down. If houses aren’t priced correctly, we are seeing a few reductions in pricing, and that’s a huge indicator.”

Pending listings were down 10% year-over-year from July 2020 to July 2021. But the average sales price in July 2021 in Denver was a whopping $622,000, according to REColorado, which is up 16% from July 2020.

Realtors say the changing market is good for both buyers and sellers.

“Things are still really going strong,” Dysart said. “It’s not cooling. It’s balancing.”

Dysart says the frenzy seen earlier this summer and last spring with multiple offers over asking price on a single listing is calming down.

While it’s still a seller’s market, in the past month there’s been a 4% increase in listings in metro Denver, which means more inventory.

“It doesn’t sound like a lot, but it is significant,” Dysart said.

While the trend favors buyers, it’s also working out in favor of sellers who previously thought they couldn’t afford to move within the Denver market.

“That has been a lot of the hang up with sellers,” Dysart said. “They’ve been concerned. If they put their house on the market, will they find another place? Now, the answer is ‘yes.’”

As for where the market goes from here, Dysart says things will likely pick up this fall. So, anyone on the fence should take the leap, she said.

“Interest rates are still historically low,” Dysart said. “That’s huge for new, first-time buyers or any buyer.”

Like Goodhew, many buyers are finding more value in fixer uppers they can buy under their budget.

“It’s not quite perfect for them and they put some money aside,” Dysart said. “And design it to themselves once they’ve closed. If you’ve got it in you, do a fixer.”

Goodhew certainly agrees with that. She bought her condo for about $50,000 less than a recently remodeled identical unit in her complex.

“I like the opportunity to redo a place the way I would want to,” Goodhew said.