Denver’s real estate market has undergone notable shifts this year when compared to past averages. Typically, around 8,757 active homes are on the market in July. However, this year, the number of homes for sale was under 6,000.
High interest rates reduce the motivation for homeowners to sell, even if downsizing to a smaller property. Buyers face the same challenges due to higher interest rates. Many have postponed their real estate plans, waiting for lower rates.
The result is fewer transactions. This pattern is expected to continue through 2023. It resembles market activity from 2013 to 2019, with one notable deviation. This year, we’re observing more frequent and larger price reductions in both size and number of properties. These dynamics are shaping the landscape for both buyers and sellers, prompting strategic decisions in the face of evolving market conditions.
Megan Aller of First American Title contributed to this report.
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