Colorado Association of Realtors Reports that Homebuyers are Making Gains in the Current Market
The Colorado Association of Realtors (CAR), in its October 2022 Market Trends report, says that, overall, there are more homes on the market and that listings are on the market for a longer period of time. There were 5,670 homes sold across the state, which is down 17 percent from September 2022. The median sale prices have decreased by two percent since September at $550,000.
“Despite higher home mortgage rates, homebuyers now have more choices,” said CAR spokesperson Matthew Leprino. “When they have more choices, they can make requests. Now we see advertising that states, “We’ll buy your rate down, we’ll pay your closing costs.”
Although a year ago, mortgage rates were at three to four percent, and are now at six percent, homebuyers are seeing some benefits. “You’re not paying above the asking price anymore,” said Leprino. “You know, if a house is listed for $450,000, there’s a strong chance you’re going to get it for $450,000.”
Sellers, on the other hand, should be patient, since the average number of days on the market is 42.
In mountain communities, prices increased by double digits. The average price of a single-family home on Estes Park has increased by 14.8 percent from October 2021, while the price of condos has jumped by 11.8 percent.
CAR spokesperson and Estes Park Realtor Abbey Pontius said, “This is a welcomed refresher to catch up on things and regroup, but there is a fearful tinge to the air as the market is shifting,”
In Steamboat Springs, the median sales price increased by 83.5 percent to $1.45 million. “The rise in interest rates has eliminated some would-be buyers who may now feel caught in a rental trap where they realize no financial or non-financial benefits,” said Steamboat Realtor Marci Valicenti.
In the northern Front Range market, some real estate agents feel stuck, which is how they view the market. Sellers are stuck in the prices of the past and buyers are stuck with the fear of what the future may hold. Sellers are learning to price to 2021 numbers and buyers are learning to leverage motivated sellers by requesting concessions to buy down their interest rate. Both seem to be working to keep the market rolling in what typically would be a slow time of the year, states one Realtor who is active in the area.