If you were house hunting in Denver in 2018 you know all too well how high home prices got and how quickly they sold. However, 2019 brought about a bit of a cool down that is continuing through the
Are Denver Sellers Missing Their Mark On Price
According to the Denver Metro Association of Realtors (DMAR), the answer is yes. Until the summer of 2018, Denver was classified as a solid seller’s market. If sellers weren’t getting flooded with offers the first few weeks their house was listed, it was a clear sign they needed to adjust their price.
The trend now? The upper hand is definitely shifting to buyers as more sellers are accepting offers below their original price. In fact, according to DMAR six in 10 sellers, last month found themselves doing just that to get their homes sold.
DMAR shows that only 17.3 percent of the homes sold in January went for above the initial list price, while 60 percent went under it. Compare that with January from 2015 to 2018, when 27 percent to 30 percent of homes in metro Denver sold for above list price. Around half went for under the list price.
Zillow, a popular online site for listings, also reports that only 23 percent of homes sold in metro Denver in November went for above the list price and by December, only 20 percent did so. That’s happening nationally as well, but not to the degree seen in once-hot markets like Denver.
Several factors go into the mispricing of listings. List prices are usually based on the prior six months of sales or comparables, so when the market is softening, sellers can find themselves with outdated information. Emotions also come into play when selling a home. Many sellers may be in a bit of denial about the current state of the market, or perhaps they are unrealistic about the worth of their home.
Regardless, the balance of power is shifting, which is great news for buyers. If you’re interested in checking out some of what Denver has to offer, contact Metrowest today – we’d love to show you around!
Ken Blevins, Chief Executive Officer of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 23 years of experience in collections, foreclosure/bankruptcy, los....
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