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Front Range Real Estate Market Update, January 19, 2023

Most sellers and real estate agents think about price by looking backward. They determine an asking price by what comparable homes sold for in the past. That’s a great place to start, but, in a market where prices are declining, if you only look backward, you’re bound to overprice.

Imagine that your home is overpriced on day one. By day 10, your home is even more overpriced as prices have declined. By day 20, your home is even more overpriced, and by day 30, if you still need to reduce the price, your home may be tens of thousands of dollars more than it should be if you want to engage buyers and get offers.

If your home is overpriced and the market is rising swiftly, like in 2021 and 2022, your home will quickly catch up with the market and be priced correctly. 

But the market has changed, and prices have fallen since April 2022. So, we continue to wonder, have sellers caught on, or are they continuing to price too high?

Nationally, about 13 percent of sellers reduce their asking price at least once. Some sellers reduce their asking price multiple times. When fewer sellers lower their prices, we’ll know that the market has started normalizing. This will also indicate that price declines have also slowed significantly. (It could mean sellers and their agents have become more thoughtful about pricing.)

Sellers are most likely pricing better.

The chart below compares the market from five months ago to today. Fewer homes for sale today have been reduced in price compared to last August. That’s a sign that sellers’ expectations about the market are becoming more realistic. (For more information about pricing right, watch our video.)

There’s one caveat when it comes to these numbers. At the end of December 2022, sellers took more than 1100 homes off the market. So, many of these homes haven’t been on the market very long – perhaps not long enough for sellers to consider reducing their asking prices. We’ll continue to look at these numbers. 

City TODAY:
Percentage of Homes for Sale Reduced in Price
IN AUGUST:
Percentage of Homes for Sale Reduced in Price
Highlands Ranch 41% 57%
Castle Rock 32% 54%
Lakewood 39% 53%
Littleton 43% 50%
Arvada 36% 49%
Thornton 34% 49%
Broomfield 47% 48%
Westminster 41% 47%
Aurora 43% 47%
Denver 37% 44%
Longmont 35% 40%
Boulder 25% 37%

Here are the numbers by county.

County TODAY:
Percentage of Homes for Sale Reduced in Price
IN AUGUST
Percentage of Homes for Sale Reduced in Price
Douglas 41% 53%
Jefferson 36% 49%
Arapahoe 44% 48%
Broomfield 48% 47%
Adams 40% 46%
Denver 37% 44%
Larimer 33% 41%
Weld 35% 40%
Boulder 32% 40%

Ready to make your move? Contact us now for expert guidance. Call 720-782-2468 or schedule a time for us to call you.

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Metro Denver Real Estate Market Activity

During the last week:
New Listings – 836
Back On Market – 222
Price Increase – 127
Price Decrease – 686
Pending – 1188
Withdrawn – 109
Closed – 645
Expired – 185

Previous Week:
New Listings – 895
Back On Market – 224
Price Increase – 137
Price Decrease – 846
Pending – 1097
Withdrawn – 132
Closed – 763
Expired – 224

Based on data from REColorado®

“David and Tom are a great team! David had helped me purchase my home, so it was great he and Tom helped sell as well..They are always there when you need them, give great advice, and stand by you through all the steps of your purchase/sale..I greatly appreciate them, and highly recommend them!! Great Team, great job!!”
– Melanie H., Aurora

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