Although the Denver metro’s median close price held steady at $585,000 in October, the close-price-to-list-price ratio dropped slightly to 98.9% as more homebuyers demanded concessions from sellers.

According to the monthly report from the Denver Metro Association of Realtors, in October, 57.9% percent of closed transactions included an average seller concession of $9,390.

That’s up from September, which recorded 56.4% of closings with an average seller concession of $9,214. In October 2022, 50.7% of closed transactions required sellers to pay an average concession of $7,553.

With interest rates hovering above 8%, most buyers used those concessions to buy down their interest rates or cover closing costs.

Concessions appear to be the name of the game, with some real estate pros reporting that buyers were asking for $25,000 - $75,000 worth of concessions on high-ticket properties.

Other report highlights include:

·       The number of closed properties dropped 12% from September to 2,986.

·       Months of inventory increased by 4% to 2.5 despite the fact the number of active listings dropped 2% from September to 7,482.

·       The average number of listings for October is 14,755, according to a historical average from 1985 to 2022. The record high number of listings came in October 2006 with 29,722 available homes. The record low fell in 2021 with 3,376.

·       The median number of days in MLS increased 14% to 16.

It appears that despite a shifting market and general uncertainty, people are still buying and selling homes.

Moving toward balance?

As the market becomes more balanced, it also resembles the pre-COVID market of 2019, which makes it crucial for to get the pandemic years out of their minds. They need to focus on value and put themselves in the buyer’s shoes. Buyers are no longer willing to overpay and, as such, pricing is the number one key in this market to sell a home.

If you’re a buyer; however, you’ve got more options and if you choose not to hibernate this winter, it could a great time to become a homeowner. If so, give Metrowest a shout today and let’s discuss your options!