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Front Range Real Estate Market Update, June 22, 2023

On average, homes that sold in the past three days for $600,000 or less sold for 97% of their original asking price. Homes that closed for more than $600,000 were similar, selling for an average of 98% of their original asking prices, while homes more than $1,000,000 also sold for an average of 97% of their original asking price.

In other words, many sellers are pricing homes too high. 

When homes are priced at or slightly below market value, they receive maximum interest and multiple offers and often sell for more than the asking price.

When sellers price too high, their homes end up sitting on the market and, when they do sell, often command less than they could have if they had been priced lower from the start. 

The last time we looked at price reductions was in March. Then, sellers were pricing more in line with market expectations than they had been. Now, though, many sellers overestimate their power in the market.

Historically, about 13 percent of sellers nationwide reduce their asking price at least once. Currently, 42% of sellers with homes for sale in Castle Rock and 41% in Denver have reduced their asking price.

In fact, in every city and county we’re tracking except for Longmont, the percentage of homes for sale that have been reduced in price has increased since March.

Sellers need to receive offers, so they decide to ask for less. They’re not pricing for our market now and have gotten somewhat unrealistic about prices, which are rebounding from their lows, but not as much as sellers would like.

The primary reason that sellers are receiving fewer offers is that interest rates remain relatively high. Homeowners thinking about downsizing or moving up to a bigger home are putting off their moves because they have very low rates and want to avoid taking on a mortgage with a higher rate. First-time buyers are still in the market, but there are fewer of them because high rates make monthly payments too high.

Percentage of homes for sale that have been reduced in price:

CityTODAYMarch 2023January 2023August 2022
Castle Rock42%34%32%54%
Highlands Ranch38%30%41%57%

Here are the numbers by county:

CountyTODAYMarch 2023January 2023August 2022

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Metro Denver Real Estate Market Activity

During the last week:
New Listings – 1462
Back On Market – 263
Price Increase – 128
Price Decrease – 1240
Pending – 1399
Withdrawn – 119
Closed – 1177
Expired – 160

Previous week:
New Listings – 1569
Back On Market – 284
Price Increase – 89
Price Decrease – 1333
Pending – 1485
Withdrawn – 124
Closed – 1159
Expired – 149

Based on data from REColorado®

“David never misses a trick. He is so completely knowledgeable about all aspects of selling a home – be it the neighborhood, pricing, contract requirements, how to market – I always have 100% confidence in him. I know he has got all of that handled and I don’t need to worry.”
– Christie B., Denver

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