Market Update: October 2023

A helpful guiding principle is to look at historical data as opposed to getting hysterical. If you look at the year-to-date numbers, this year performed most closely to pre-pandemic levels of 2019. Sales volume is over $24 million, median days in the MLS is at 11 for 2023-which is just one day shy of the median in 2019-and the close-price-to-list-price ratios are both over 99 percent, while pandemic years were over 103 percent.

Ultimately, sellers need to get the pandemic years out of their minds. That time frame was a perfect storm of low interest rates, unprecedented demand while residents fell out of love with their homes working from home and the ability to literally work anywhere was a novel idea. As employees are called back to the office and interest rates hover around eight percent, the party is over. Sellers 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.

Buyers on the other hand are sitting in a unique position, and some know it. While overall mortgage applications are low, hard money loans are on the rise as well as gifted funds from loved ones to help bridge the gap towards home owner-ship. This may be surprising, but December is historically a busy time of year, and increasing inventory is finally providing buyers with the gift of choice. Many buyers tend to hibernate for the winter. But for those who continue to look through the holiday season, there is less competition and sellers are usually more motivated to sell before the end of the year.

- Denver Metro Association of Realtors Stats Committee