DENVER — The housing market has shifted in favor of buyers as prices dip and inventory piles up, according to the latest July housing report from the Colorado Association of Realtors.
“Even though it may seem like affordability is a challenge, it is actually a great time to buy,” Cooper Thayer with the Colorado Association of Realtors told Denver7's Jessica Porter. “You have much more time to search for the perfect home, and you're much more likely to get a great deal right now.”
Gone are the days of record prices and low inventory, which resulted in buyers competing with several other offers just a few years ago.
Median pricing for a single-family home in the Denver area is down 1.6% from June to July to an average of $630,000 — that is down 1.2% from a year ago.
Townhomes and condos have seen a larger decline. Prices are down 2% from June to July, which is a 6.5% decrease from a year ago. The average price for a townhome or condo is now $392,500.
“Given high interest rates, and especially with the high HOA and insurance fees that come with owning a townhouse or condo, oftentimes, sellers are needing to make adjustments to the price in order to make that work at an affordable level for buyers,” Thayer said.
Inventory is also favoring buyers. Single-family home inventory in the Denver metro area is up 5.1% from last year, or a four-month supply. Townhouses and condo inventory is at 5.6 months, up more than 30% from a year ago.
Although interest rates are high, the Colorado Association of Realtors reports that this is the best time in 14 years to buy a home.
“The average concession rate has been over $10,000 on any given transaction and we're seeing that at about 60% of all closed transactions,” Thayer said.
Sellers need to do more to differentiate themselves from the abundance of listings on the market.
Move-in ready homes and those in convenient locations are selling quickly, while homes that need renovations and are located in more remote areas are taking longer.
“Right now, it's taking about 45 to 50 days on average for a home to find a buyer, which is a lot longer than we're used to here in the very desirable Denver metro area,” Thayer said.
