After months of bidding wars, soaring prices, and extreme concessions from buyers, brokers said the market was starting to look normal.
DENVER – Frustrated potential homebuyers who gave up their search this spring may have more success now, a new market trend report from the Denver Metro Association of Realtors (DMAR) found.
In the group’s analysis of the metropolitan housing market in July, realtors found a return to normal behavior after more than a year of extremes.
“We’re seeing a return to normal,” said Andrew Abrams, Chair of the DMAR Market Trends Committee. “That looks like seasonality.”
What Abrams called “buyer craze” usually ends around July 4th. That year it went down towards the end of June, he said, capping demand by a year and a half that exceeded supply.
Homes were still selling fast in July – off the market an average of eight days this July, compared to 24 days in 2020. But Abrams said the pace of home sales is slowly slowing.
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Instead of selling a home until the end of the week, some are still open for deals beyond the weekend. The bidding wars of the past few months seem to be subsiding.
However, the prices remain at significantly higher levels than in the previous year. The average closing price for a single family home in July was $ 600,000. A year ago, the median price was $ 100,000 less.
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“We’ve been driving nearly 90 mph for almost 18 months now,” Abrams said. “What happens when you take your foot off the brake? You don’t start backing up. You just start slowing down. We’ll see that in the market.”
Lower interest rates are still driving people into the market. Abrams said buyers who burned out earlier this year could now have a better experience, with more access to home screenings and fewer races to compete in bidding wars.
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