Market Shift

U.S. Real Estate News Recap: October 2021

Here’s a quick digest of what happened in U.S. real estate last month:

+ Nationwide this year, the typical home buyer submitted two offers before one was accepted — double the amount from 2020.

+ Zillow began offloading 7,000 of their iBuyer homes in October and have just announced that they are shutting down Zillow Offers and laying off 25% of their workforce. Zillow CEO Rich Barton stated, “We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility.”

+ More home sellers are cutting their list price. Four experts weigh in on what they think will happen to home prices through the end of the year.

 


 

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Only One Month of Housing Inventory in Denver!

The story remains the same: no inventory!

When I say “no inventory,” I mean that we are consuming homes as fast as the market is producing them (1,429 new listings vs. 1,416 sold units in August). We typically see a reduction in active listings around mid to late fall but not during the summer months. Active listings for August were nearly as low as what we saw this past May. Buyers who were searching back in May suffered through several offer rejections before they were able to get under contract.

It’s not all doom and gloom though! 30-year mortgage rates continue to decrease, homes are taking a few extra days to sell, and the median price dipped slightly from June’s highs.

Pro-tip to buyers: keep your guard up, and treat every new listing like one that will be gone on Monday. Rely on your broker’s offer recommendations and don’t forget the competitive market clauses as a free insurance policy in the event that the home you are submitting an offer on is “the one.”

Want more detailed information about the market in your neighborhood? Please reach out!

Is the housing market slowing down in Denver?

The current catchphrase in Denver’s real estate market is “market shift.” While my day-to-day observations agree with that, the statistics aren’t necessarily reflecting a shift!

Denver’s median sale price dropped $10k to $650,000 since June, which could indicate the start of a slowdown or it could be an early seasonal cool-off driven by a super-hot spring and early summer sell-off. Inventory remained unchanged from June, but days spent on the market dipped to 13 — the lowest it’s been since we began tracking it in 2007! One thing to point out is the majority of July’s closings are from contracts that were signed in June, and June was still a super-hot month. August’s numbers should be interesting and we’ll definitely be chomping at the bit to analyze the data as soon as we can!

Want more detailed information about the market in your neighborhood? Please reach out!