A slight drop in interest rates didn’t give home buyers enough incentive to overcome the traditional seasonal slowdown in November.
November’s sales volume was down 14% from last year in the Denver metro and 19 percent from October, according to the monthly report from the Denver Metro Association of Realtors.
The report also showed homes are spending more days on the market, and sellers continue to agree to price concessions as the close-price-to-list-price ratio dropped to 98.6%.
At the end of November, the number of active listings hit 6,684, down 11% from October’s 7,482 properties. Average active listings for November are 13,657.
The median days on the market climbed to 22 from 16 in October, and the median close price sat at $565,250, down from $581,000 in October.
“The opportunity for buyers continues as we look at the close-price-to-list-price ratio,” said Libby Levinson-Katz in prepared comments with the monthly report.
“What we know in the industry, but don’t publish here, is that sellers are currently negotiating significant amounts towards lender buy-downs to help buyers ride the wave of higher interest rates while keeping the sales price fairly static.”
Statewide, the interest rate reduction wasn’t enough to motivate sellers with locked-in low rates.
Consequently, available inventory is down 20% in the Denver metro and 12.5% statewide, according to the monthly housing trends report from the Colorado Association of Realtors.
Limited inventory kept prices high, with the median price for a single-family home at $600,000 in the metro and $559,000 statewide.
“As the year draws to a close, the real estate market struggles to hold its head above water as the interest rates and general consumer confidence affects buyers and sellers. They are both adopting a cautious approach, anticipating more favorable interest rates before engaging in any transactions,” said Boulder/Broomfield-area realtor Kelly Moye.
But Denver area realtor Matthew Leprino is optimistic heading into the new year.
“Prices are relatively stable, there is a slightly extended marketing time for houses as compared to previous years, and buyers have more options when selecting ‘the one.’
“Daring to say it, even with 6 and 7% interest rates, which are still historically low, all we need is either a reduced price, which is sure to follow with increasing inventory, and we are knocking at that rare intersection of ideal for everyone at the table. On this path, does that project an ideal spring and summertime season?”
The news and editorial staffs of The Denver Post had no role in this post’s preparation.
