Colorado housing market becoming more buyer-friendly

Colorado’s real estate market is becoming more buyer-friendly

After two years of chaos in the real estate market, buyers and sellers are beginning to see a shift towards something more…normal.

LOVELAND, Colorado – Lacey Vesper is under contract to buy a home in Loveland, Colorado.

She closes the sale of her current home this week and expects to close the new home about a week later.

“I needed something that was move-in ready and I got it,” she said. “It’s across the street from a great K-8 school, and I have a 2 year old son, so I can’t wait to get there and we can start racing.”

Vesper’s experience this summer is day and night different from the experience of many other buyers over the past two years.

“It took us about 2 days to find the house I needed. Just a handful of homes we looked at,” she said. It was really easy to find some that were in the price range this time, and they had sat down [on the market] for a bit too, maybe even had a small price drop.

Vesper will pay almost the same price as the listing price.

She did not have to offer or pay for valuation difference coverage.

She didn’t have to give up a home inspection.

And his purchase is conditional on the sale of his current home.

“It seems less crazy, and it’s like, as an everyday individual shopper, you have a better chance now,” she said.

“It was a deal we hadn’t seen in a long, long time and — it was refreshing,” said Kelly Moye, Vesper’s realtor and also a spokesperson for the Colorado Association of Realtors.

“She really had the ability to feel protected, as a buyer, throughout the process.”

The last two years have been at times unpredictable and very difficult for buyers. Home prices soared, competition intensified, and buyers offered concessions that not only stretched budgets, but often put them at great risk to secure a home.

But with rising interest rates, the market is turning.

“It all really started in April, when rates went from 4% to 5% in one week. That’s when the change started,” Moye said. “Within a few days we started seeing offer times coming out of brokers remarks, things changed and changed. Then we started seeing price reductions – [properties sat] on the market a little longer than expected.

“These price cuts have changed the whole direction of the market, because it changes the dynamics. It seems, to the buyers, that they have the power now, or at least more. And if also feels more balanced.

According to the latest CAR statistics:

  • Single-family homes in Denver County are on the market longer — about 18 days this month, up from 11 in August 2021.
  • Last August, single-family homes in Denver County sold for 102.4% of list price, down from 99.1% in August.
  • As of August 2022, Denver County has 1.4 months of inventory for single-family homes — up from 0.9 months of inventory last August.
  • The median sale price for a single-family home in Denver County was $655,000 in August 2022, down from $626,000 last August.

“Appreciation is still happening, it’s just happening at a slower pace,” Moye said.

The Denver Metro Association of Realtors also shared updated statistics, reflecting data from 11 counties around the metro:

  • The median price for a single-detached home in August was $645,000, down from $581,000 last August.
  • The number of active listings (inventory) increased by 93% compared to the same time last year.
  • Homes stay on the market longer: 19 days in August 2022, compared to 11 in August 2021.

Timing worked in favor of Lacey Vesper.

“I’m lucky to have been able to wait because… [at the] beginning of this year, there’s just no hope, no chance for me,” she said.

“Even in the last six months I have seen drastic changes in the market when at the start of this year I had no chance. There’s no way it happened to me earlier this year like it did now.

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