September 2023 Housing Update
“Focus on Time In the market not Timing the Market”-unknown
In the 11-county Denver Metro area, September brought about a typical seasonal slowdown in the residential real estate market, impacting both buyers and sellers. Here’s a breakdown of the key indicators:
- Closings Down 17%: The number of home closings in the Denver Metro area saw a decrease, down 17% from the previous month. This dip in closings is a usual characteristic of the summer market transitioning to fall.
- 25% Fewer Closings Compared to 2022: When compared to September 2022, there were even more pronounced changes. This year, there were 25% fewer closings, indicating a shift in the market dynamics over the past year as interest rates remain at higher levels.
- Stable Home Prices: Home prices; however, remained relatively stable, with the median closed price of a Denver Metro home increasing by less than 1% when compared to the previous month. On a year-over-year basis, September’s median closed prices were up just 1% compared to the same month last year, as demand leveled off.
- Fewer Newly Listed Homes: The number of newly listed homes in September decreased by 5% when compared to August. Additionally, compared to the same period last year, sellers brought 12% fewer homes to the market. This reduction in listings may impact choices for buyers and the overall competitiveness in the market.
- Buyer Activity Declines: Buyer activity slowed in September, with fewer contracts executed on homes as compared to August. The number of listings pending sale was down 8.5% compared to the previous month. The median number of days it took for a home to move to pending status increased by 5 days, suggesting that potential homebuyers are taking more time to make decisions.
What we are seeing now is the traditional seasonal slowdown. If you are buyer this translates into, go time. Yes, there is less to choose from but there are also less buyers to compete with. We saw the same market activity last Fall, changing leaves brought deals and negotiations. As we came into the new year the opportunities to deal fizzled and we stayed this way until late August of this year. This has been our experience with our clients, first-hand knowledge not regurgitated from headlines. Seller’s, our advice to you is price your properties in range of reasonable and make those homes shine from the front door to the back door. No detail should be missed when readying your home for the market.
Mortgage rates are climbing still, when reading all the talking head commentary I feel like I am in the middle of an opinion tsunami. The predictors have been 100% wrong in terms of mortgage rates this year. They continue to spout all kinds of predictions and at this point the thing to do is ignore it all. Pay attention to time in the market as opposed to timing the market. Ask people who you know and trust what their experiences have been. We can say with a fair amount of confidence, that over time, people have generated more wealth using real estate or the stock market than if they had not. As always, we thank you all for your continued support of our businesses. Willie and I are very grateful for each and every one of you.
If you think The Walters Group can be helpful please don’t hesitate to Contact Us!
Thanks ReColorado for the information/stats