The Denver real estate market for February is beginning to show the results of too many houses on the market. Denver still ranks right up there as having the nation's number one inventory of foreclosures, which is making it difficult to sell homes without having to lower the price from a seller's initial hopes.
Sales were down from January nearly 13%. Some of that may be due to Denver's December through February snow, which this year was considerably more than any average year in the Denver area. Streets stayed nearly unpassable for weeks waiting for warmer weather to set in and melt the icy ruts. Buyers did tend to stay home and wait till the streets were less of an obstacle course.
Prices dropped only slightly, but values can't keep pace with rising inflation. If you have to sell a house right now in Denver, you'd better make sure it measures up to the best homes in your part of the market, or you'll be looking to lower prices monthly till you hit the value right. Days on market has increased nearly 20% over this time last year.
Buyers, on the other hand, are having a heyday, with interest rates as low as they've been in awhile, and a great inventory to choose from. Homes are selling for up to an average of 5-10% off asking price (another reason for sellers to make their prices realistic). Some recent buyers have had trouble making up their minds among all the choices available.
The spring market promises to be a bit better than the winter market, but not enough to send sellers' hearts a-flutter. Buyers are still in the driver's seat in Denver.