According to an analysis of pricing data from Redfin Corp., high-interest rates are weighing heavily on homebuyers, but they also are prompting a record number of sellers to drop their prices. They found that 20.8% of active listings nationally had a price drop in October.

In Denver, 46.5% of active listings had a price drop in October, Redfin found. The only other metros with a higher percentage of listed homes with a price drop that month were Cincinnati (55.2%) and Indianapolis (51.3%).

Nationally, the weekly average for price drops was nearly 7% for the four weeks ended Oct. 29. That's the highest point on record, according to Redfin.

While Denver is among the top metros seeing price drops, homes were still nearly meeting their expected sales prices with the average list-to-sale price reaching 99% in October. Redfin also found 26.3% of homes sold over the list price.

In October, Denver's median home sales price and list prices were $575,000 and 3,138 homes were sold — 10.47% fewer than the year prior, according to Redfin.

Interest rates aren't the only factor in the drops, but they are compounding the affordability equation at a time when many sellers are pricing aggressively.

The affordability crisis also is sparking demand in the build-to-rent sector — particularly among young buyers who have been priced out of the market.

According to the Mortgage Bankers Association, applications on average are down 22% nationally.

Additionally, pending home sales declined in all but three of the nation's 100 largest metro areas: Austin, Texas; Tampa, Florida; and Las Vegas.

Despite the increase in price drops in October, the national median sales price is still up 3.4% compared to 2022 — although some formerly high-flying Sunbelt markets have seen declines. That includes West Palm Beach, Florida (10.6% decline), Austin (6% decline) and Fort Worth, Texas (3% decline).

Conversely, cities with double-digit increases in median home sale prices include Newark, New Jersey; San Jose, California; and Columbus, Ohio.

Redfin said growth in sale prices may slow in the coming months as it starts to reflect sales that went under contract as mortgage rates hit 8% in October.

If you’re looking to become a homeowner in Colorado, there are opportunities out there. Contact one of the experienced professionals at Metrowest and let’s discuss your option!