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June 2023 | Market Update

"Real estate continues to be very neighborhood specific, especially for single-family homes. Two similar homes in different are­as of town can perform widely differently, where one will receive multiple offers selling to the highest bidder and the other may linger on the market with multiple price reductions.
The real question is, what is the cost of waiting? If that perfect home comes on the market and a buyer loses it, how much is it going to cost in terms of rate, purchase price, and time to wait before finding a similar house with this inventory? If a seller re­ceives a low offer, how much will it cost over time with days in MLS and price reductions?
As an industry, we have been following the rise and fall of interest rates with bated breath for the last year. The fact is, many people are making real estate and mortgage decisions right now if they need to. The dramatic shift this year has been that peo­ple are no longer making real estate decisions because they'd like to."
Libby Levinson-Katz
Chair of the DMAR Market Trends Committee | Denver REALTOR®
  • LUXURY MARKET ($1,000,000 AND UP): "As Dorothy might have said if she were in this market, "Toto, I have a feeling we aren't in 2022 anymore." What a difference a year makes! Every­thing about the $1-million market is lower and slower than it was this time last year. Comparing 2023's year-to-date numbers to the same time last year, all indicators point to a slowdown in this price bracket: the number of closed homes was down 30.13%, pending sales were down 16.83%, total sales volume was down 28.32%, price per square foot was down 2.53%, and the median days in MLS was up a whopping 125%. Considering the economic turmoil experienced since May of 2022 - record-breaking interest rate increases, bank failures, high inflation, the crash of the crypto market and debt ceiling drama - this slowdown is understandable. In uncertain economic times, it's natural for people to pump the breaks on spending, pause and wait for the economy to steady itself." Colleen Covell, DMAR Market Trends Committee member & Denver REALTOR®.
  • SIGNATURE MARKET ($750,000 - $999,999): "Despite an increase in interest rates and uncertainties about the economy, the spring housing market continued gaining traction in Denver Metro as activity was up for both buyers and sellers. A 15.04% increase in new listings meant buyers had more homes to choose from in May after a slight drop-of in April. A welcome bump indeed, but buyers remain hungry for more. For a while now, we have heard lots of talk about a "new normal" in the housing market, but I am not sure we know what normal is yet. It is too early to tell whether 2022 was an anomaly or a shift. What we do know is that overall, and compared to other markets around the country, Denver Metro remains strong. Through the proverbial chaos and need for inventory, there is some consistency - buyers are more patient and strategic in their approach, while sellers absolutely must factor in every small detail and price a home accordingly." Nick DiPasquale, DMAR Market Trends Committee member & Denver REALTOR®.
  • PREMIER MARKET ($500,000 - $749,999) "The real estate market is full of uncertainties and unknowns. From local issues such as inventory levels, zoning, and land use, to more macro issues like interest rates and geo-political relationships, much is simply out of our control. What's not out of our control is knowing the current realities of our local market. And with that, we look at how properties priced between $500,000 and $749,999 performed across metro Denver in May. In short, this segment is moving fast. Altogether, just like afternoon weather in the Rockies and whether the basketball world will ever fully respect Nikola Jokic for the superstar he is, real estate markets are full of unknowns. Such is life. Control what you can control and know what you can know. Make your plan, work your plan and have a blast in the process!" William Maline, DMAR Market Trends Committee member, and Denver REALTOR®.
*Remarks from Page 15-16 of the March 2023 Market Trends Report from DMAR

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