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Nov 24 Buy while others are snoozing

End-of-Year Opportunities for Savvy Buyers

With election results now in and the holiday season quickly approaching, the Denver real estate market is seeing a shift in dynamics that both buyers and sellers should consider. As Thanksgiving and Christmas draw near, activity tends to slow, which has created even more of a “buyer opportunity market.” While it’s not an official buyer’s market, current conditions certainly feel like one, with buyers now enjoying increased leverage.


This seasonal slowdown, combined with election-related distractions, has put buyers in the driver’s seat. Sellers are more open to concessions on price, repairs, and closing costs, creating a favorable environment for buyers ready to act. According to a recent Redfin survey, 23% of first-time buyers planned to wait until after the election due to factors like economic uncertainty and potential Fed rate changes. For those not waiting for the dust to settle, this is an opportune moment to negotiate favorable terms.


In October, active listings reached 10,940, slightly down month-over-month but still a significant 46.22% increase from last year. However, this remains below the long-term October average of 14,478, reflecting that inventory is still tight compared to historical norms. New listings decreased to 4,691, with some sellers choosing to hold off until spring when prices traditionally peak.


The average close price rose 4.93% month-over-month to $708,072, and the median price rose 4.34% to $599,975. Compared to last year, these are modest increases, with both the average and median close prices up around 3.5%. The market has cooled from its pandemic highs, but prices remain resilient.


Denver Metro’s Luxury Market Sees Surge in Buyer Activity Despite Fewer Listings

The luxury home market in Denver experienced an unexpected surge in October, especially in the attached home segment, despite a 20.45% decrease in new listings. According to the Denver Metro Association of Realtors (DMAR), an “October Surprise” drove a 63.16% increase in contracts for attached luxury homes, while detached homes saw a slight dip of 3.98%. The luxury sector performed so differently across property types that Colleen Covell, Member of the DMAR Market Trends Committee and Denver Realtor called it “A Tale of Two Cities.” Attached homes priced over $1 million had a median market time of just 21 days—a sharp drop from 74 days in September—while detached homes priced over $2 million now have 6.65 months of inventory due to a naturally smaller buyer pool.


Despite a dip in new listings, buyers still have a wide selection, with 6,605 detached and 476 attached homes available in the $1 million-plus market. Some standout luxury listings are offering rare amenities and high-end design, appealing to buyers seeking unique features, from urban ADUs to expansive mountain views.


Sources: Rebecca Bratburd, "Hot Properties: 4 Listings Heating up the Market This Month," 5280.com, November 8, 2024; Denver Metro Association of Realtors (DMAR) Market Trends Report, October 2024.


Info for Sellers

Sellers should adjust their pricing strategies based on recent activity. With homes taking longer to sell, pricing accurately and competitively is essential. Looking at data from the last 30 to 45 days, rather than older figures, will provide sellers with a better understanding of current buyer expectations. Overpricing can lead to extended days on market, multiple price reductions, and the risk of deterring potential buyers.


Info for Buyers

For buyers, this season represents a unique opportunity. Homes that stay on the market through the holidays are often listed by motivated sellers, leading to potential deals. With fewer buyers active right now, there’s less competition and more room for negotiation. Historically, prices stabilize post-election, and waiting until spring could mean missing out on these favorable conditions.


While some may wait until after the holidays, both buyers and sellers should remember that trying to time the market is challenging. The best moves are those aligned with your personal goals and timing. As always, working with a knowledgeable agent will help you navigate these dynamics and make the most of current opportunities.


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