Behind the market new normal
We’ve been feeling the winds change for months now, and the data has finally caught up with what me and my experienced real estate colleagues have been seeing on the ground: the change is here.
One of the most notable pieces of data relates to price reductions. An eye-popping 45.6 percent of the homes that went under contract in the week through August 16, saw price reductions. The average price reduction stood at 6.5 percent off the list price, according to Denver market data analyzed by First American.
As such, I’m thinking clearly and strategically about how to price homes correctly, that means pulling back 5 to 7 percent on initial pricing strategy. This prevents price reductions and the stigma of a home languishing on the market. As always, I follow the latest data, this is why you want to work with an experienced agent.
Three listings we’ve had this summer ended up selling well below the comps compared to where we were in the spring. Prices are coming down, not up, compared to the market we have been used to.
Home prices are dropping, too. The median Denver metro single-family home price dropped in July to $650,000 from the month previous.
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3 other pieces of data
Some other data caught my eye and tracked with what I’m seeing on the ground that I wanted to share.
The 5,650 active single-family listings at the end of July represented a 96.3 percent increase from the same time in 2021. This means inventory is ticking way up.
In addition, single-family home sales are down 32.0 percent over the same time period, and the average days on market have ticked up 62.5 percent to 13 days.
All this makes clear and solidifies that the market has indeed shifted. It will continue shift as the intense sellers market we’ve seen over the last several years slowly balances more with buyers.
Reach out for questions. Real estate success is still for sure more than possible!