Denver Real Estate Market Update: September 2024
The Denver real estate market continued to shift in September. With motivated buyers reentering due to lower interest rates, an even higher inventory of homes, and slightly reduced prices, the market has grown increasingly dynamic. In this post, we’ll explore the changes from August to September, what these trends mean for those looking to buy or sell, and why working with a skilled agent and contractor like Jeff at Iron Works Realty is essential for a smooth experience.
Changes from August to September: A Closer Look
Increased Buyer Motivation
September saw a 5% increase in home contracts over August and a substantial 28% boost compared to last year. Lower interest rates and slight price reductions have encouraged buyers to take advantage of more affordable conditions, leading to 3,805 executed contracts in September. This trend suggests we may see a strong close to the year in terms of home sales, as many contracts signed in September will likely result in closings in the fourth quarter.High Inventory Levels
Inventory continued to rise in September, with 11,143 active listings—a 50% jump from last year and a slight increase from August’s record-breaking numbers. While the number of new listings (5,029) was 10% higher than last year, it was slightly lower than August, indicating that some sellers may be holding off on listing. This high inventory level benefits buyers by offering a broad range of options, allowing them to be more selective in their search.Dipping Home Closings and Prices
While buyer contracts increased, closings were down by 14% compared to August and 1% year-over-year. The median home price dropped to $575,000, down 2% from last year and 3% from August, indicating that sellers may need to adjust their pricing expectations slightly to stay competitive. For buyers, this decline offers an added incentive to enter the market before prices potentially stabilize or increase again in the spring.Shifting Rental Market
The rental market saw a slower pace, with a 6% decrease in properties leased compared to last year and a 12% dip from August. Median rent also decreased by 4% year-over-year, giving renters slightly more negotiating power. However, active rental listings remained steady, with a slight increase to 738 available properties.
Tips for Sellers: Preparing for a Winter Sale
If you’re planning to sell your home this winter, there are several steps you can take to make it stand out:
Stage for the Season: Buyers in the colder months often appreciate homes that feel warm and inviting. Consider adding cozy elements like textured throws, warm lighting, and seasonal touches to create an atmosphere that appeals during the winter.
Focus on Curb Appeal: As winter approaches, maintaining your home’s curb appeal is crucial. Clean gutters, trim landscaping, and ensure pathways are clear and well-lit. These small touches can make a significant difference.
Adjust Pricing Strategically: With the median home price dropping in September, pricing your home competitively will be essential for attracting motivated buyers. Iron Work’s expertise can guide you in setting a price that aligns with market trends without sacrificing your property’s value.
Tips for Buyers: Finding the Right Home in a Competitive Market
Buyers who are prepared to act decisively can find excellent opportunities in today’s market:
Take Advantage of Lower Interest Rates: With interest rates dipping, now is an ideal time to finance a home purchase. Locking in a lower rate can make a significant difference in affordability over the long term.
Be Strategic with Agent Fees: Recent changes in agent commission fees have opened the door for buyers to leverage these costs during negotiations. By working with a knowledgeable agent like Jeff, you can explore ways to use agent fees as a tool to enhance your offer or reduce closing costs.
Work with a Contractor’s Eye: Many homes on the market have the potential for renovation or customization. Jeff's experience as both a real estate agent and contractor gives you an edge, helping you evaluate homes not just for their current state but for the potential they hold with a few updates.
How Agent Fees Can Be Used as Leverage
Changes to agent commission fees are providing buyers and sellers with more flexibility in the negotiation process. Sellers can offer a competitive buyer’s agent commission to attract more interest, while buyers may find opportunities to negotiate fees to offset closing costs. With Jeff’s deep understanding of the Denver market and his dual experience as a contractor, Iron Works is well-equipped to help clients navigate these changes to their advantage. Our expertise ensures you’re not just saving money but maximizing your investment by finding the best possible terms.
Looking Ahead to Winter: What to Expect
As we move into winter, buyers and sellers should anticipate a slight slowdown in the market’s pace. However, with lower interest rates and a high level of inventory, motivated buyers are expected to continue searching for homes. Sellers should focus on making their properties move-in ready, while buyers can benefit from a greater selection and less competition during the colder months.
Why Choose Iron Works Realty?
With extensive experience in Denver’s real estate and construction industries, Jeff brings a unique perspective to the buying and selling process. His ability to evaluate a home’s structure and potential improvements can be invaluable for buyers, while sellers benefit from his keen eye for enhancing a home’s appeal. Whether you’re buying or selling, Jeff’s guidance ensures you’re making informed decisions in a changing market.
To discuss how Iron Works Realty can help you make the most of the Denver real estate market this winter, contact us today and start planning your next steps with confidence.