DENVER -- Home sales in the Denver metro area are falling. Sellers have been pushed to cut prices, according to experts and new data released by the Denver Metro Association of Realtors.
There have been horror stories of outrageous asking prices and bidding wars in the Denver area, but relief has arrived for buyers.
The Denver housing market continues to shows signs of becoming more normal, according to analysts.
“You’re starting to see some people come to terms with reality,” said Jeff Jordan, a loan officer with NOVA Home Loans.
Jordan says a more balanced market isn’t a bad thing. Branch manager Nicole Rueth of Fairway Independent Mortgage Corporation agrees.
“This is such a great time to be in the market because it’s not that stressful market that it had been,” Rueth said.
The Denver Metro Association of Realtors reported a striking fall in demand from last month.
In September, the sale of single-family homes in the metro area went down 30.5 percent compared to August, according to DMAR data.
Homes are staying on the market a bit longer. Over time, prices are going down, allowing more first-time homebuyers to find their starter home.
Meanwhile, home loan interest rates are climbing. Wednesday was a bit of a wake-up call for potential buyers.
“[Wednesday] was the worst day for interest rates in seven years on a one-day move,” Jordan said.
Interest rates are still considered historically low, hovering around 5 percent.
Wednesday’s mortgage rate increase followed a strong jobs report. The Federal Reserve rates are expected to increase three times in 2019.