Continued higher mortgage interest rates have kept many buyers on the sidelines in Colorado, as sellers face a growing pressure to adjust pricing and make concessions to get deals completed, according to the latest Market Trends Housing Report from the Colorado Association of Realtors (CAR).

While dipping just slightly from July to August, the inventory of active listings is off nearly 15% statewide and is down 22.6% in the seven-county Denver metro area. For those listings that are moving to close, the average days on market rose just shy of 8% to 41 days from July to August and is up more than 32% from a year ago. In the Denver-metro area, the average 29 days on market reflects a 15% month-over-month increase and is up more than 38% from August 2022.

No matter where you are in the state or what type of property – single-family or townhome/condo – the percentage of list price received remains between 99% to 99.5%. The combination of conditions pushed single-family median sales pricing up a tick between July and August where it now sits up 2.3% from a year ago at $580,000 statewide, and up just shy of 2% in the Denver-metro area to $629,995.

The persistent high-interest rate environment combined with home prices remaining elevated has prevented excitement from buyers, causing inventory to begin to pile up. Looking at seasonal trends, both the single-family and multi-family markets appear to have passed their annual peak as the summer comes to an end. For the rest of the year, expect prices to slightly decrease as more inventory is added to the market without an increase in demand. Barring any major changes in financial markets, buyers are likely to remain cautious and patient throughout the winter before the market picks back up next spring.

As the year progresses with no major economic events or decreases in mortgage rates, sellers are beginning to face a more challenging market. They have likely recalibrated their expectations for what the market will bear and are starting out listing their homes for less than they would have a year ago or are reducing the original list price of the home until the price attracts a buyer.

If you’re thinking of buying or selling this season, there’s pros and cons to either. Give Metrowest a shout and we can talk about your options!