The State of the Denver Metro Housing Market
After several years of a “sellers’ market,” the Denver Metro housing market has experienced an unpredictable era, with external forces creating new challenges for buyers and impacting home values. For example, the higher interest rates of the last couple of years – intended to ward off inflation – have increased the cost of borrowing, making mortgages too costly for some would-be buyers. As demand has slowed, so has the rapid increase in home values that we’ve seen in recent years. For older adults entering retirement or looking to downsize and sell their homes, understanding the current state of the housing market and predictions for the near future can help them determine the best time to sell, maximizing the selling price of their homes and creating a solid financial foundation for retirement.
Blair Bryant is a realtor and Certified Senior Advisor at The Steller Group, and has supported numerous Holly Creek residents and Denver Metro older adults on their downsizing and home selling journeys. In this guest blog, he shares his expert advice for when to sell your home, taking into consideration the current state of the Denver Metro housing market.
When is the Best Time to Sell Your Home?
By Blair Bryant, Realtor®, Certified Senior Advisor | The Steller Group
Determining the best time to sell your home often hinges on the personal reasons driving your decision. Traditionally, big life changes—such as a new job, the arrival of a child, or entering a new phase of life—prompt the need to move. While we might recognize the need to sell, the lingering question often remains: “Is this the best time?”
This year has ushered in a new reality for home sellers. For the first time in recent memory, selling your home may require more than just a weekend. It sounds surprising, but from the spring of 2020 through early 2023, homes frequently sold quickly, often with multiple offers above the asking price. During that period, I cautioned clients that it was not a normal market and would eventually cool off. Now, with interest rates having decreased slightly after a year of interest rates hovering around 7%, we’ve finally arrived in this “new market.” What does this look like? The key factors are supply and demand. As of July 31, inventory levels in the Denver Metro area housing market reached 2.85 months of supply, and active listings increased 68% year-over-year. Combined with 5% fewer closings, the market has indeed changed. The bottom line: there are more homes for sale, and fewer buyers are purchasing.
If you’re a seller, you might think this is all “doom and gloom,” leading to concerns about home values. Is the bottom falling out? On the contrary, home prices are still holding steady, with a modest year-over-year increase of around 2%. When we broaden the perspective to the past five years, the average price of a detached home has surged from $535,000 to $800,000. So, while it may take longer to sell and require some negotiation on price and inspection, overall values remain robust.
Before listing your home, consider the following:
- Buyers have options. Every detail matters when listing your home. According to HomeAdvisor, staged homes sell 33% to 50% faster than unstaged ones.
- Your Realtor needs to understand the current market. I dedicate significant time to ensuring my listings are fully prepared and show-ready (including staging) and priced appropriately, so they don’t sit on the market for weeks on end. Well-presented homes are still selling quickly, and in some cases, above the list price.
- There’s no guarantee next year will be better. While interest rates have recently decreased, home values remain historically high and out of sync with income levels. Buyers are grappling with inflation, and it may take several years for incomes to catch up with prices.
So, when is the best time to sell? The answer is: when you’re in control of the decision—before a life event forces your hand. If you’re considering downsizing, I’m available for a free consultation on how best to make this life-changing move as stress-free as possible.
