As we step into September, the Colorado Front Range real estate market is showing some notable changes. Whether you're in the market to buy, sell, or just keeping an eye on trends, these updates could impact your decisions moving forward.
Inventory Is Up: A Welcome Change for Buyers
One of the most significant shifts is the increase in housing inventory. After years of tight supply, we’re finally seeing more homes hitting the market. Active listings at the end of August were up 1.24% compared to July and a staggering 56% compared to this time last year. This rise in inventory is offering buyers more options than we've seen in recent years.
For those who have been frustrated by the lack of choices and competition, this could be a game- changer. More homes on the market mean less pressure to make hasty decisions and a better chance of finding a property that truly meets your needs. However, while the increased inventory is a positive development, demand is still strong, so acting quickly and strategically remains crucial.
Interest Rates Are Down
Another positive trend for buyers is the recent decrease in interest rates. While the drop isn’t drastic, it does bring some relief to those looking to finance their home purchase. Even a small reduction in rates can translate to significant savings over the life of a mortgage, making homeownership more affordable for many.
Even a quarter-point drop in interest rates can save thousands of dollars over the term of the loan. This decrease also means that buyers may qualify for slightly larger loans, potentially allowing them to explore a wider range of properties.
Price Trends: A Mixed Picture
As of August, the median price for homes in the Colorado Front Range is $590,000. This represents a 1.67% decrease month over month, but a 1.44% increase compared to last year. While prices have softened slightly in the short term, the year-over-year gains suggest that the market is still strong overall.
Additionally, homes are taking longer to sell, with the average days on the MLS rising 31.25% to 21 days. The months of inventory, a key indicator of market balance, also increased 3.5% to 2.96 months. This shift indicates a more balanced market, giving buyers a stronger negotiating position.
NAR Practice Changes: Minimal Impact So Far
You may have heard about the recent changes in practices recommended by the National Association of Realtors (NAR). These adjustments were anticipated to potentially shift how buyers and sellers approach the market. However, so far, these changes do not seem to be significantly affecting buyer or seller behavior in the Colorado Front Range. The market dynamics continue to be driven more by inventory levels, interest rates, and overall economic conditions than by these procedural updates.
What Does This Mean for Sellers?
If you're considering selling your home, these changes in the market dynamics mean you'll need to be strategic. With more homes available, buyers have more choices, making it essential to ensure your property stands out. Pricing your home competitively is more important than ever. Overpricing in a market with increasing inventory can result in your home sitting on the market longer than expected and could ultimately lead to low offers or your home not selling.
In addition to pricing, sellers may also need to be more flexible in other areas to close deals. This could include being open to concessions, such as covering closing costs, or being more accommodating when it comes to repairs requested by buyers. In a market where buyers have more options, offering these extras can be the deciding factor in securing a sale.
My Advice to Buyers: Don’t Wait for Spring!
With inventory up, prices leveling off, and interest rates slightly lower, this is the best time in years to be a buyer. While many buyers typically wait until spring to make their move, I believe there’s no reason to wait. The current conditions provide a rare opportunity to secure a home in a more balanced market. As inventory increases, buyers gain negotiating power and waiting until next spring could mean increased competition once again.
Final Thoughts
Whether you’re buying or selling, staying informed about these market shifts is crucial to making the best decisions for your situation. As always, I’m here to offer personalized advice and guide you through the process, ensuring you make the most of the current market conditions. Feel free to reach out if you have any questions, need a market analysis, or want to discuss your real estate goals. Here’s to a successful September in Colorado’s vibrant real estate market!
Chelsea Steen Realtor
740-334-9898
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