Market Update, April 27, 2023

Inventory has been rising, which is excellent for buyers, who have more to choose from than in recent months. More buyers are entering the market, too, which is keeping prices stable or even causing them to rise in some parts of town. This contrasts with our falling prices from April 2022 through January 2023. Then, as interest rates rose, prices went down. Prices now are similar to where they were in February 2022.

Every buyer we talk to is concerned with interest rates, which have a significant impact on how affordable it is to purchase a home. However, fixed rates on 30-year mortgages have come down from their highs near 7% and are closer to 6.5% today but continue to bounce between about 6.1% and 6.6%. So despite fluctuating interest rates, the market seems more stable now than it’s been in a while.

Despite fluctuating interest rates, buyer demand is high. Nationwide, mortgage purchase applications rose 3.7% last week compared to the week before. Here, more homes are going under contract than are coming on the market.

Well-priced, well-prepared homes are selling quickly, but sellers must price well. Fifty-five homes sold in Denver in the past two days. When homes were priced well, sellers accepted offers over the asking price and went under contract quickly. When homes were priced too high, homes lingered on the market and sold for much less than they could have. One home, for example, was priced at $700,000. Four days later, it was under contract for $725,000. A similar home went on the market, priced at $669,000, went under contract after 40 days, and sold for $659,000. Had this home been priced lower, it likely would have sold faster and for more money.