Market Retraction & What it Means for You
Our average daily number of Homes for Sale ('Actives') rose another 4.8% this week to 4,967. Of those, 1,304 were new listings. New listings decreased week over week by -0.6% and compared to one year ago new listings are down -25.7% keeping inventory choices tight in 2023. Pending transactions ('in-escrow/ under-contract') grew from last week by 2.5% with 1,085 listings going under contract.
Inventory Update
Inventory increased to a 1.1 month of supply in the 7 metro counties. When this number dips below one month, it suggests that multiple offers are more likely due to more buyers in the market than homes to sell. Notably, the market is hotter in the inner land-locked suburbs running around the inside ring of C-470 and cooler in areas of new construction, Central Denver, and in the outer ring suburbs outside of C-470.
Odds of Selling
The Odds of Selling a listing in the next 30 days dipped by 2.3% to 59.3%. However, this surpasses June's average odds of selling from 2013-2019, which stood at 55.1%. Even in light of higher interest rates, demand continues to outpace the previous cycle (excluding pandemic years), maintaining a competitive market overall.
Balance in the Market
Currently, we are at 17.5% of balance: meaning, that we would need to have total 28,319 listings available for sale to balance our market out and create a six-month supply of inventory. A 'balanced market' would need to be reached before we could get close to a 'Buyer's Market'. Our active 4,967 feels a long way away from 28,319 - so if you know anyone moving out of state... I'd love to sell their house!!! jk.
Buyer Activity and Price Reductions
Last week, 13,846 showings were scheduled, averaging 2.8 shows per property. If your home is on the market and not getting at least 2.8 showings a week, you might need to chat with your agent about a price reduction, better photos, or feedback potential buyers might have given. (Messy? Smelly? Sorry!) Buyers are also viewing more homes than they used to before writing offers and with the low-inventory, their average of seeing 13 homes before making a decision means your home better stand out if you want it to sell. The rate of price reductions increased to 28.8% of units, with the size of reductions being larger this week at 5.2% off the original price.
Featured Property:
*SOURCES: KeepingCurrentMatters, DMAR, the fabulous Megan Aller (Stats/Title) & Nichole Rueth (Lending), LIV Sotheby's Office Meeting Updates, Colleagues, News Sources, & More!