Buyers Are Taking Over the Denver Metro Area Real Estate Market
The Denver Metro Association of Realtors released its September report a few days ago. And as anticipated by pundits, the residential property market is slowly shifting towards a buyer’s market. The association’s in-house experts contend that the adjustment could accelerate if interest rates were to rise. It is not difficult for anybody who has had a casual glance at the released data to arrive at a similar conclusion.
That sellers are willing to reduce prices to attract offers is, perhaps, the first indicator that buyers are increasingly consolidating their power. Up to 37% of properties sold in August, compared to 31% for the same period last year, received an offer after sellers reduced their prices significantly. The report also indicates that most buyers are interested in listings below the median price.
Buyers also managed to squeeze other sweeteners from the sellers during the period. Forty-one percent of properties sold offered concessions. That is a significant increase from 34% in the previous year and 29% in 2017. Other sellers had to accept contingencies and rent-backs to retain good offers.
Apart from the negotiating power, prospective homeowners are also exercising tremendous patience as they evaluate their choices. That was noticeable as the average number of days that residential properties stayed in the market increased to 33 during the month. And the number of units sold tumbled by a massive 20.22% from August. Active inventory remained fairly unchanged but high still.
Despite the advantages, the number of buyers is still sufficiently high, thanks to cheap loans, that it prevents the upset of the laws — favoring sellers — of demand and supply.