10/07/2022
The monthly Denver Metro Real Estate market report is in! 📈
It’s been a long time coming, but we’re starting to get closer to what is considered a “balanced market”, which we haven’t seen in over 16 years! As you heard in the news over and over this past spring, we have been in what is called a “sellers market” for quite some time now. A seller’s market, in simple terms, is when the advantage lies with sellers. Numerically, this is when there is 3 months or less of inventory on the market. What does that mean? It means that if not a single new house were to hit the market, we would run out of houses to sell in three months-time. A “balanced market” would be 3-6 months worth of inventory and a “buyer’s market” would be 6 months or more of inventory.
Let’s start with where we were in April of this year, which was when we experienced historically low levels of inventory. In April, we saw MOI (months of inventory) of 0.53 months for detached homes and 0.44 months for attached homes. That means if not a single new home was listed for sale, we would have no more houses to sell in about two weeks time. Our current MOI is now sitting at 1.98 months for detached homes and 1.59 months for attached homes. Since our MOI is still below that 3 month marker, it is still considered a “seller’s market”. However, buyers are now experiencing relief when house hunting. You are now able to take more time when deciding on a home and you’re also more likely to face a win-win situation with the seller. Buyers are now more likely to be able to negotiate inspection and appraisal terms than they were able to this spring.
Other numbers that point towards the trek to a balanced market include inventory getting up to 7,683 active homes, which is up 10.72% from last month! The higher that inventory gets, the less competition for you as a buyer. Sellers can take comfort that we are still numerically in a seller’s market. Pricing your home aggressively and following your agent’s guidance can still ensure you have success as a seller. Buyers and sellers can both rejoice that as we enter a more balanced market, win-win negotiations are more likely to occur. Have questions? Shoot me a DM!
