Denver’s typically bustling spring housing market experienced a surprising slowdown in April as higher interest rates and economic uncertainty kept buyers at bay.
Despite an inventory increase of 33% compared to last year, Colorado realtors report a cautious buyer pool nervous about rising prices and market unpredictability, according to April’s Market Trends Housing Report from the Colorado Association of Realtors.
“Despite the influx of listings, buyers remain cautious. Concerns about interest rates and the broader economy are causing many to pause,” said Kelly Moye of Compass.
“This feels like a typical spring market in terms of inventory, but consumer hesitation is putting a damper on activity.”
Although more homes are available than have been for over a decade, it would be logical to expect buyers to jump into a market filled with options.
“However, finding motivated buyers in April wasn’t exactly an easy task,” said Cooper Thayer, a broker associate with the Thayer Group in Castle Rock.
“Unrelenting interest rates, economic uncertainty, and overall inflationary pressures have kept buyer motivation low across the country this spring.”
The median price of single-family homes statewide rose about 3% to $599,000, while the median price for a condo-townhome dropped 5% to $407,000.
The months of available inventory climbed to nearly four months, up 31% from a year ago.
Moving into a balanced market can seem boring, said Chris Hardy with Elevations Real Estate in Fort Collins.
“Compared to the heyday of post pandemic purchase pandemonium, buyers now have the luxury to look at multiple houses for sale in just about any price range; they also have more time to make a decision since more homes are available and only buyers with the stoutest of hearts (and pocketbooks) are actively buying,” he said.
“Negotiations for things like seller concessions for interest rate buy-downs and inspection items to have repairs completed before closing have once again become commonplace.”
Creative incentives are crucial to attracting interest as sellers grapple with fewer offers.
“The fear factor is real. Buyers are worrying about prices and what’s next, while sellers are lowering their prices and wondering how many showings before they receive an offer,” said Aurora-area realtor Sunny Banka.
“It’s obvious that, unless the home is well priced, very clean, and in good repair, it may experience a longer shelf life on the market.”
The news and editorial staffs of The Denver Post had no role in this post’s preparation.
