Despite inventory beginning to reach healthier levels in select metro and mountain areas of the state, other markets are seeing reductions in inventory of up to 63% in some neighborhoods due to the lack of new listings, proving yet again that all real estate is local, 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.

Statewide, inventory is down 12.7% for all product types from one year ago compared to this time last year as potential sellers elect to stay in their homes and not take on a higher interest rate by purchasing a replacement home.

Sales continue to fall statewide, down 14.7% across Colorado for all product types. However, most areas of the state are watching median prices climb, ticking up 2.9% for all product types across the state from this time last year. REALTORS® attribute this dichotomy to limited inventory in lower price points rather than heightened demand.

Mortgage interest rates continue to stymie the market, as average buyers are either priced out of the market due to extreme affordability challenges caused by higher interest rates and continued price appreciation or are reluctant to enter the market in the hopes that interest rates will eventually go down.

In most markets, sellers are finding that they need to come to the table with pricing concessions and interest rate buydowns to get their homes sold and may find they need to adjust their pricing to meet buyer’s expectations.

Opportunity exists for those buyers who are willing to take on higher rates in favor of less competition in the market and better negotiation with sellers, especially as homes sit on the market longer with days on market until sale going up 29.3% statewide from this time last year.

Most experts agree that savvy buyers are taking advantage of the fall price reductions and the seller’s willingness to offer concessions. Those waiting on the sidelines may be disappointed when the rates go down and competition goes up.

Is now the right time for you to become a homeowner? There’s only one way to find out. Give Metrowest a shout today and let’s explore what’s available!