DENVER -- Denver's housing market saw another record-setting month with the average residential home selling for $377,550 in June, but realtors say the market may finally be easing up.
The Denver Metro Association of Realtors says for the first time in a while home buyers are starting to go under contract without competing offers and price reductions are beginning to make their way to the market.
But realtors say it is still a very competitive sellers’ market
As potential home buyer Sin Lounady and his realtor Susan Chong assess an 837-square-foot, two bedroom, one bathroom, Capitol Hill condo, it's clear they have to move fast and furious if they like what they see.
Priced at $229,000, Chong says price per square foot, its right on par. But buyers in the $200,000-400,000 price range are the ones seeing the most competition.
“My stress level? Its pretty high,” Lounady said.
On the market for less than 24 hours, the condo has already been shown more than two dozen times and has at least one offer on the table.
“It's been frustrating for buyers right now,” said Realtor Susan Chong of Slifer Smith & Frampton Denver, Inc.
Frustrating especially for those looking for homes priced below $400,000. It's a price point that remains extremely competitive.
“We looked at a place that was on the market for maybe two or three days. We looked at the property, walked out, considered making an offer on it, when we made an offer it was already under contract, within 20-30 minutes of making that decision,” Lounady said of just one of the many houses he’s missed out on in his three months of searching.
“I think more people are able to buy with cash and don`t have to wait for appraisals so I think that really drives the market,” Chong said.
Some good news though for buyers looking in the $400,000 to $1 million range as realtors say that market seems to be facing a cool down.
“It feels as though it went from 24 hours, 48 hours on the market to two weeks on the market which is relatively still a short period of time but at the same time its more time than what other people have been used to,” Chong said.
But as Lounady is forced to make a decision in less than 24 hours, one thing is clear. “It is absolutely still a sellers’ market,” said Chong.
Chong says one of the problems is nearly all of the new construction is for rental units right now, which leaves both buyers and sellers feeling trapped.