On November 5th, The Denver Post published an article with the headline “Metro Denver Home Listings Drop in October,” and the article begins with the author saying that “(f)or months,” we’ve all been wondering where all the buyers went. Now, the sellers are disappearing, too.
Factually, I can’t really argue that there is less active inventory right now than there was last month. There is. But I can discount the semantics, the click-bait, and the foreboding tone we see in the news regarding our real estate market.
I’ll paint a slightly better picture.
The dip in inventory we saw from September to October (9,286 in September to 8,557 in October…about a 10% drop), has as much to do with a typical seasonal decline as it does anything else. In fact, this time last year, there were 8,539 homes on the market. Call it equal.
What’s a little more interesting this fall vs. last is that the dip in inventory from September to October jumped from 3% last year, to that aforementioned 10% this year. One explanation for this is interest rates. They’re awesome right now, floating around 3.6%. THIS has been the case “for months.” Buyers are certainly taking advantage. In fact, in May, July, September, and October of 2019, our market saw more buyers than May, July, September, and October of 2018. The only aberration in that trend would be June; June of 2018 saw 5,979 closings. June of 2019 saw 5,772 closings. Whatever. Point is, the question is absolutely not “Where are all the buyers?” They’re there. They’re doing what they’ve been doing. Buying stuff.
What’s different, is that they can be a little more patient, and find the stuff they want. They can afford to be picky, or they can afford to negotiate sellers off their asking price. And those two things also explain the 10% dip in listings from September to October.
The need continues to grow for sellers to really be strategic if they’re listing right now.
There are a lot of listings out there right now that aren’t in great, presentable shape. Couple that with pricing as though there’s no inventory, and we see more listings sitting, making price adjustments, and/or closing below asking price. If you’re having to adjust your price, be prepared to sit for a while longer. Average days on market for sellers making price adjustments is 59 days, compared to 14 for homes that are priced well the day they hit the market.
That sounds more like something we’ve been saying for months. So, if you’re considering listing right now, make sure you’re as informed as possible, and that you have a clear strategy in place before hitting the market.
Buyers, you’re in great shape.
Rates are awesome, and there are more homes to choose from. We’re still in a seller’s market, sure, but the grip is not as tight as it was.
As always, please reach out any time to chat, or if you have questions. Always here to help! Have a Happy Thanksgiving!!