Despite small increases in the overall inventory supply, higher mortgage interest rates continue to broaden the traditional seasonal slowdown in housing markets across the seven-county Denver metro area and in markets statewide. As a result, buyers willing to come off the sidelines have gained a little advantage and sellers, willing to sacrifice their 3.5% and lower interest rates, find a market calling for pricing concessions and interest rate buydowns to secure contracts, according to the latest Market Trends Housing Report from the Colorado Association of REALTORS® (CAR) and analysis from the Association’s spokespersons across the state.

Mortgage interest rates continue to reach heights not seen in two decades and affordability/attainability has become even more challenging for most first-time home buyers as moderately-priced homes coming on the market are few and far between.

While most price points saw double digit declines in the number of homes sold, interestingly, the million-dollar price band has seen a decline of just 1.4%. With fewer homes selling across the other price bands, it’s no surprise that median price has crept up – but don’t be misled that home price appreciation continues to rise. At best, prices appear to be stabilizing, if not declining just slightly.

Showing volume has decreased quickly into the fall/winter season and the competitive edge has shifted slightly towards buyers, but only those who can stomach mortgage rates above 7%.

Interest rates steadily climbed throughout September, pressuring sellers to be more aggressive with pricing to convince buyers to consider their homes. The list-price to close-price ratio dropped to 98.9% for single-family homes last month (98.7% statewide), indicating buyers are more in control than they’ve been in a while.

If becoming a homeowner in the coming months is still one of your goals, there is definitely opportunity out there. Contact one of the experienced pros at Metrowest – we’d love to show you what’s out there!