September Market Report - Metro Denver
Last Month's Key Statistics
for Denver's Real estate Market
Attached & Detached Single Family Homes
THE AVERAGE SALES PRICE OF $706,206 IN AUGUST DECLINED 0.1% FROM LAST MONTH AND ROSE 2.3% FROM LAST YEAR.
Quick Stats:
- Average active listings for May is 15,439 (1985-2023).
- The record-high for August was set in 2006 with 31,664 listings, while the record-low was set in 2021 with 3,582 listings.
- Historically, active listings typically decrease by 1.3% percent from July to August. This August's decrease of 1.3% aligns closely with the historical trend.
The biggest real estate news from the month of August wasn't market data or interest rates, but rather we as an industry experienced new rules implemented as a result of the recent NAR settlement. The two biggest rules that are now in place are:
1. Buyers must have a signed Buyer's Agreement executed prior to touring homes with their agent.
2. Offers of compensation to a Buyer's Agent are no longer listed in the MLS.
I've had many intentional conversations with colleagues, clients, and general consumers alike. There is a lot of confusion in the public as to what all these changes mean, and it will certainly take some time for the industry to adjust to "normal practices" over the next months and even years. For now, here are a couple of points of clarity:
1. Commissions for both buyers and sellers have always been negotiable and will continue to be.
2. Offers of compensation to buyer's agents can still be made.
I've also spent many hours reading articles from the advocacy group that brought the lawsuit which brought about these changes. I believe there will be continued reform in the industry and there are many complex implications from these new rules. But here are two items I am certain of:
1. Florence Realty Co. will continue to provide fabled service for fair fees! This has been and will always be our aim.
2. Sellers benefit from working with buyers who are receiving advice from a qualified agent. Obviously that comes at a cost to sellers, but they do receive a benefit from this cost in that their buyer is likely receiving sound advice that will help keep the transaction moving forward toward a successful closing. This has proven true for many of my sellers in recent transactions this year.
As far as August's data goes, the market is following many historical norms and nothing is on one extreme or another. Many are keeping a close eye on interest rates as there are expectations of a drop soon. If/when that comes, expect to see a spike in demand.
I'll be continuing to discuss industry changes one-on-one. If you have questions or would like to have a conversation, I'd love that as well! Just reach out!
