Colorado real estate market becomes friendlier for buyers

Colorado housing market becoming more buyer-friendly

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After two years of chaos in the real estate market, buyers and sellers are starting to see a shift to something more…normal.

LOVELAND, Colo. — Lacey Vesper has a contract to buy a house in Loveland, Colorado.

She closes on the sale of her current house this week and hopes to close on the new house a week later.

“I needed something that was move-in ready and I got it,” he said. “It’s across the street from a great K-8 school, and I have a 2-year-old, so I’m looking forward to it and we can start working.”

The Vesper experience this summer is day and night different from the experience of many other buyers in the last two years.

“It took us about 2 days to find the house I needed. Just a handful of houses that we looked at,” she said. It was really easy to find some that were in the price range this time, and they had sat [on the market] for a little bit too, maybe there was even a little drop in prices.”

Vesper will pay almost the same price as the listed price.

She did not have to offer or pay for appraisal gap coverage.

She didn’t have to give up a home inspection.

And your purchase depends on the sale of your current home.

“It feels less crazy, and it feels like an everyday individual shopper — now you have more of a chance,” he said.

“That was a contract that we hadn’t seen in a long, long time and it was refreshing,” said Kelly Moye, a real estate agent for Vesper and also a spokeswoman for the Colorado Association of Realtors.

“She really had the ability to feel protected, as a buyer, throughout the entire process.”

The last two years have been unpredictable at times and very challenging for buyers. Home prices soared, competition increased, and buyers offered concessions that not only stretched budgets, but often put them at great risk to secure a home.

But with rising interest rates, the market is changing.

“It really all started in April, when rates were 4-5% in a week. That was the moment the change started,” Moye said. “Within a matter of days, we started seeing offer deadlines coming out of broker feedback, things changed and changed. Then we start to see price reductions: [properties sat] in the market a little more than expected”.

“Those price reductions changed the entire direction of the market, because it changes momentum. Buyers feel they now have power, or at least more. And if it also feels more balanced.”

According to the latest CAR stats:

  • Single-family homes in Denver County are on the market longer: about 18 days this month, compared to 11 in August 2021.
  • Last August, single-family homes in Denver County sold for 102.4% of list price, compared to 99.1% in August.
  • As of August 2022, Denver County has 1.4 months of inventory for single-family homes, compared to 0.9 months of inventory last August.
  • The median sales price of a single-family home in Denver County was $655,000 in August 2022, up from $626,000 last August.

“The appreciation is still happening, it’s just happening at a slower pace,” Moye said.

The Denver Metro Association of Realtors also shared updated statistics, reflecting data from 11 counties around the metro area:

  • The median price of a single-family home in August was $645,000, up from $581,000 last August.
  • The number of active listings (inventory) has increased 93% since this time last year.
  • Homes are on the market longer: 19 days in August 2022, compared to 11 in August 2021.

Time worked in Lacey Vesper’s favor.

“I’m lucky to be able to wait because… [at the] beginning of this year there is simply no hope, no opportunity for me,” he said.

“Even in the last six months I have seen drastic changes in the market, whereas at the beginning of this year I had no chance. There is no way it would have happened to me earlier this year like it has now.”

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