1. Home Prices: Stabilizing After Summer Peaks
- Median Home Prices: The average home price in Denver currently hovers around $615,000, slightly lower than the summer highs but still up 3-5% year-over-year. This reflects steady demand despite interest rate pressures.
- Price Segments: Entry-level homes (below $500,000) remain competitive, while luxury homes are seeing longer days on the market, as buyers become more selective.
2. Inventory Levels: Tight Supply Continues
- Listings: Active inventory in October has decreased by 8-10% compared to September, following the typical seasonal trend.
- Low Inventory Impact: The lack of new listings keeps competition strong among buyers, especially in desirable neighborhoods like Cherry Creek, Highlands, and Washington Park.
3. Mortgage Rates: A Challenge for Buyers
- Current Rates: Mortgage rates are currently around 7.5%, adding pressure on buyers’ affordability.
- Buyer Trends: Some buyers are opting for adjustable-rate mortgages (ARMs) to reduce initial costs, while others are waiting for possible rate adjustments in early 2025.
4. Days on Market: Slightly Increasing
- Homes are spending an average of 32-38 days on the market in October, compared to just 25 days during the summer. This reflects the shift into a slower fall season.
Opportunities and Challenges for Buyers
- Less Competition: With fewer buyers in the market, those still actively searching face less bidding competition, making it a good time to negotiate better terms.
- Seasonal Deals: Some sellers are eager to close deals before the holidays, making them more flexible on price and concessions such as closing cost assistance.
- Affordability Pressure: However, higher mortgage rates continue to affect affordability, limiting some buyers’ options.
Opportunities and Challenges for Sellers
- Motivated Buyers: Although the market has slowed, serious buyers remain. Staging homes and ensuring they are priced competitively can attract these motivated purchasers.
- Longer Sales Cycles: Sellers should prepare for their homes to stay on the market longer than during the summer months. Offering incentives, such as including appliances or helping with interest rate buy-downs, can make a listing stand out.
- Holiday Factor: Listing a home in late October or early November can be advantageous for sellers who want to close before the holiday season.
Investor Insights
- Rental Market: With rising mortgage rates, more potential homeowners are opting to rent, boosting demand for rental properties. Investors should focus on multi-family homes or short-term rentals near downtown or ski-resort areas to capture winter travelers.
- Fix-and-Flip Potential: The end of the year can also bring distressed properties to market, offering good opportunities for investors looking to rehab and resell by spring 2025.
Predictions for November and Beyond
- Fewer Listings: Expect a further drop in new listings in November as the holidays approach.
- Potential Price Adjustments: Sellers may offer discounts or incentives to close deals before the end of the year.
- Ski Season Impact: As ski season kicks off, areas near resorts will see an uptick in demand for vacation homes and short-term rentals.
The Denver real estate market in October 2024 reflects typical seasonal patterns, with fewer listings, longer sales cycles, and opportunities for buyers and sellers willing to adapt. While higher mortgage rates present challenges, savvy buyers can find good deals with less competition, and sellers who stay flexible can still close at favorable prices.
Now is the time to take advantage of the seasonal shift. Whether you’re looking to buy, sell, or invest, working with a knowledgeable real estate agent will help you navigate the dynamic Denver market and achieve your real estate goals before the year ends.
