Homes priced correctly get multiple offers, days on market inch up

As interest rates remain high and more homes become available, pricing in the Denver metro housing market remains a science.

“If a home is priced correctly, or even under market, it may still receive multiple offers,” said Libby Levinson-Katz, chair of the Denver Metro Association of Realtors Market Trends Committee in the September report.

“However, if the price is slightly high, then days on the market climb until you find the right buyer or the right price.”

According to the report, active listings in Denver increased 9% in August from July and 19% over August 2022. The average number of active listings for August is 15,900, so with 6,858 active listings last month, the metro area’s inventory remains historically low.

The number of new listings increased about 2%. At the same time, pending sales dropped nearly 1%, and closed sales declined 2%. The median closed price dropped to $582,000 while the median days on the market increased to 11 days.

“Buyers feel the shift and think that we are no longer in a full-price market,” Levinson-Katz said.

Days on market creep up

“Median days on market increasing to 11 days may seem benign, but it also means homes are sitting on the market for 70 days or more. As a result, buyers want to negotiate on price and receive a concession for a rate buydown. The close-price-to-list-price ratio remains in the 99th percentile, showcasing buyers and sellers are coming together to make sales happen without huge negotiation swings.”

But while the days on are inching up, they remain historically low.

“It may be hard to believe but in 2019 and 2020, the average days in MLS in the ($750,000 to $999,999) segment was 41 days. Today, post-pandemic, days in MLS are an average of 31 days, still selling at almost 25 percent faster than before,” said Michelle Schwinghammer, a realtor with RE/MAX Alliance and a market trends committee member.

“I am convinced that much of the market angst we are collectively experiencing today is due to a hard psychological rest after living through the warp-speed pandemic market years where everyone got used to an unhealthy and sustainable market pace. Today, normal feels slow, really slow, and that perception can cloud the judgment of buyers, sellers and agents alike.”

Price still matters

Months of inventory for detached homes under $1 million sat just shy of two months, while above a million dollars, inventory sits at roughly two and a half months and increases to 5.79 months for properties priced at $2 million plus.

The best-performing price band for both detached and attached homes was $750,000 to $999,999, with a monthly sales increase of over three percent.

Although buyers look for bargains, competition remains.

“Last month, a client beat out another buyer who toured a Highlands home in a prime location three different times before putting in an offer, then came in $5,000 under list price (a potential savings of just .005 percent),” Schwinghammer said.

“My buyer won the deal by researching the home and area before touring, visiting once with a thorough one-hour tour, and acting with a decisive full-price offer the next day. The home sailed through inspections, closed fast, and appraised above purchase price.”

The news and editorial staffs of The Denver Post had no role in this post’s preparation.

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