Slow summer market means better deals for Denver homebuyers
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"It's a really nice time to be a buyer," Compass Denver agent David Schlichter tells us.
Why it matters: That's a phrase we haven't heard in a while.
State of play: Active listings for the Denver metro were up 31% in May, while pending sales and home prices remained steady year-over-year, data show.
- In May, many listings averaged about one showing a week, Schlichter says.
The big picture: Mortgage rates have forced many people out of the market, which means remaining house hunters have less competition and could score better deals.
- "All signs seem to be indicating we've already peaked for the year," Schlichter says. For now, Denver buyers have a slight edge over sellers.
The other side: In recent years, sellers were able to get multiple over-asking offers pretty easily, but that's not the case today. There are fewer buyers than homes for sale, Schlichter explains.
Yes, but: The deals won't last forever. When mortgage rates fall, "that's when the floodgates will open," Schlichter says. First-time buyers will hop off the sidelines, sellers will list, and competition will be fierce.
What's next: Elevated mortgage rates, which are dampening the appeal and affordability of home buying, could remain higher for longer.
- The Fed signaled in June that only one interest rate cut is coming this year.