Fall Real Estate Market Update: Navigating the Seasonal Shift
As we transition from the prime selling season into the cooler months of fall, the real estate market is experiencing some notable shifts. Understanding these changes is crucial for both buyers and sellers who want to navigate this evolving landscape effectively.
New Listings Decline as We Enter Fall
As expected, the number of new listings is continuing to decline as we move out of the busy summer months and into fall. This seasonal trend is typical, but it also signifies a shift in market dynamics. New Sellers are thinning out, contributing to a more competitive environment for the remaining active listings.
Active Listings and Stagnation
While new listings are down, the number of active listings has seen a slight increase, up 3.62% from previous months. However, many of these properties are stagnant, meaning they have been on the market for a while without selling. This stagnation is a sign that Buyers are becoming more selective, and Sellers may need to adjust their expectations.
Days on Market Increasing
One of the more striking changes is the increase in the average days on market. Year-over-year, this metric has jumped by over 30%. While this may seem alarming, it’s important to note that the increase is from historically low levels in previous years. Denver’s market, which has been abnormally tight, is slowly starting to align more closely with national medians.
Shift in Stale Listings
Previously, stale listings were more common in the $1M+ market, but this trend has now shifted to lower price points. While completely updated homes are still selling, it’s taking more than a week on average to secure a buyer. This is a departure from the frenzied pace of previous years and signals a more measured market.
Advice for Sellers
For those who need to sell, the strategy is clear: price competitively, be prepared for more days on the market, and expect offers to come in about 5% below your list price. The days of quick sales at or above asking price are fading, so setting realistic expectations is key to a successful sale.
Advice for Buyers
On the flip side, Buyers now have more inventory to choose from, albeit of varying quality. Patience is crucial in this market. Understand that if historical trends hold, things could improve by springtime, offering better opportunities for finding the right home.
Federal Reserve Rate Cut on the Horizon
In a move that could have significant implications for the housing market, the Federal Reserve has projected a rate cut at their September meeting. Whether this cut will be 0.25% or 0.50% remains to be seen, as it will depend on incoming economic data. This expectation has already started to drive mortgage rates below 6%, which is great news for the housing market’s stability. If this trend continues, we could see a calm fall market leading into a potentially busier spring—time will tell.
Looking Ahead
As we head deeper into fall, the real estate market is clearly shifting. Sellers need to adjust their strategies, and Buyers should remain patient and discerning. With the possibility of a rate cut on the horizon, the market could stabilize, setting the stage for a more active spring. Stay tuned, as the next few months will be critical in shaping the trajectory of the housing market.