Higher mortgage interest rates combined with limited housing inventory in September accelerated the start of the traditional seasonal slowdown in housing markets across the Denver metro and statewide.

Many industry pros are noting their areas are already settled into winter hibernation.

With showing volume decreasing quickly into the winter season, the competitive edge in the market has certainly shifted slightly towards buyers, but only those who can handle 7 percent interest rates.

Despite limited inventory, sellers often face reducing prices and providing interest rate buydowns for sellers, according to the September Market Trends Housing Report from the Colorado Association of Realtors.

Those who are selling are learning how to price appropriately for the market, many even reducing their list price before going under contract.

Buyers who are waiting on the sidelines are missing an enormous opportunity. They have the chance to negotiate on the sale price and potentially get concessions from the seller to buy down their rate. It’s a chance to get a great deal in this market for the first time in years.

According to the association’s report, statewide:

·       The number of new listings dropped by 13% from August

·       The number of homes sold decreased by 11% from August

·       The median sale price reduced by .9% to $575,000

·       The percent of list price received dropped by .3% to 98.7%

·       Days on the market increased by 12% to 46 days

Rising interest rates and low inventory seems to be the continued cycle in the Denver metro area as many sellers are not listing their homes because they do not know where they can go and afford a home that they desire.

While the season is certainly slowing down, there are some advantages to home shopping in the fall and winter. Sellers, who are listing are generally very motivated, which is a great for buyers. It’s also a season of decreased competition as people gear up for the holidays and colder months.

Is becoming a homeowner still on your 2023 to do list? There’s still time. Contact Metrowest today and let’s discuss your options!