The Denver Real Estate Market in October 2021
It looks like the real estate market in Denver is cooling down as we head into the cooler months. This is normal and seasonal, no need to panic. Zillow's problems are not a reflection of the broader market coming to a crashing halt.
In a continued year of turbulence, October represented a month of relative ease in Denver metro's ever bumpy real estate market. The majority of statistics across the board were seasonally consistent with what we've seen in years past, boding well for more households hosting a Thanksgiving dinner. There have been more homes purchased year-to-date than any in the previous five years. With prices staying relatively consistent month-over-month, the door has been opened for buers to become homeoowners. –Andrew Abrams, Chair of the DMAR Market Trends Committee
Here's the snapshot.
Looking at detached, single-family homes, just 3,645 listings closed last month. That's a decrease of 9% month-over-month and 23.1% year-over-year.
Why? You guessed it, seasonal slowing combined with a continued lack of inventory. The number of new listings coming on the market fell 15.7% month-over-month and 12.3% year-over-year.
We did, however, see a bump in the number of listings that changed status to pending, where an offer was accepted but the transaction is yet to close. For detached homes, there was a 7.3% increase month-over-month, so we might see closings bounce back.
With plenty of activity still happening, the average closing price for detached, single-family homes is still coming in at 101.7% over asking, but prices actually decreased slightly from $689,748 in September to $684,700 in October. Attached homes dropped from $444,104 to $440,560. And while there's been a year-over-year increase across the board, it bodes well for buyers today.
With low inventory plus closings and pending sales still coming through, there were just 3,376 active listings—2,351 detached and just 1,025 attached—by the end of the month which is a record low. When looking at data from 1985 through 2020, the average is 15,729 active listings for the month of October.
The best news for buyers is that the market continues to move at a less frantic clip during these typically slower months. Pacing is reflected in the number of days listings are spending on the market which is now up to 14 days and providing much-needed relief, time to think and make smart decisions.
While we’ll have to wait and see if our seasonal slowing continues or things roar back to life, make sure you have an experienced, PorchLight Real Estate Group professional by your side. Our agents have the connections (including 180+ colleagues in-house) it takes to find a home that fits your needs or a buyer who is ready to get closed.
To view our full report on Denver real estate market stats for October, click here.
How to Inspect a Home During an Open House
With Denver home listings now sitting on the market for an average of 14 days, you're more likely to have time to slow down and really take things in when you walk through a home. While your PorchLight agent will help you hire a reputable home inspector once you're under contract, feel free to do a little sleuthing on your own.
Take pictures and notes, bring a flashlight and measuring tape, and while it's bad form to rummage through an owner's belongings at an occupied home, you should walk away with a good idea of things like available storage space and water pressure. If an open house is busy, you can also schedule a private showing so that you can get a closer look before making an offer.
So here are (more than) a few things to check out on your own. Feel free to ask the hosting agent for clarification about anything you find.
Look Before Going Inside
- How easy or difficult was it to find parking? Will this affect your ability to have company over?
- Is the neighborhood well taken care of? Noisy? Lots of kids? Do you hear any road traffic?
- Does the house itself, as well as windows and structures like a chimney, look plumb, level and square?
- Are the gutters in good shape and are the downspouts pointed away from the house?
- Does the landscape slope away from the foundation? Is it well maintained?
- Are there any cracks, stains or damage to the driveway? What about the roof and siding?
- Do you see any major cracks, sinking or other issues with the foundation?
- Is the garage door crooked and does it sit flat/even on the ground?
- Does it look like there are any additions to the home? Check if they were permitted.
Examine All the Interior Details
- Is there any staining on the walls, floors or ceiling? (Signs of water damage)
- Are there any offputting or musty smells? Are candles or other room deodorizers being used?
- What's the age, condition and consistency of flooring throughout the home? Any creaks or squeaks?
- Is there old wallpaper a bad paint job, signs of replastering or drywall repair/replacement?
- Do the floors feel level? Do doors or windows stick when opening or closing them?
- If applicable, do the stairs have secure railings? Are the steps evenly spaced? Squeaky?
- Are there any drafts coming from windows or doors? Any rooms that feel colder/warmer than others?
- Check under sinks with a flashlight, are there stains or other signs of water damage?
- Flush toilets and turn on faucets, is the water pressure strong and even (no sputtering)?
- Does the home include appliances? How old are they and do they appear to work?
- Is the water heater less than 12 years old? (Preferably much less than that)
- How old is the HVAC system and has it been serviced regularly? When was it last cleaned?
- Use your measuring tape—will your sectional sofa, king-sized bed and giant TV fit?
- Is there enough storage/closets? A pantry? A linen closet? Attic? Extra space in the garage?
- Are there enough outlets in each room? Is there electrical in the kitchen island?
- Are there GFCI outlets in wet areas such as the kitchen and bathroom?
- Any signs of pests, rodents or uncared for pets? FYI, this is not covered in a general inspection.
- If it's a two-story home, look out the windows—are you ok with the views?
Check Out the Backyard
- If there's a patio, is it covered and is the cover in good shape? Any cracks, sinking or other damage?
- If there's a deck, is there damage? Do boards feel soft or spongy? Are the railings and steps secure?
- Again, does the landscape slope away from the foundation? Is it well maintained?
- Is there an irrigation/sprinkler system? Is it working properly? Has it been blown out each winter?
- Is there water pooling anywhere that it shouldn't be?
- Are there any mature trees near the foundation or with branches touching the roof?
- Is the fence in good shape or is it leaning? Is there water damage at the base from snow buildup?
- Find the electrical box–does it contain fuses (round colored knobs) or circuit breakers (rows of switches)?
- Is there any other damage, rust or signs of a fire in or around the electrical box?
- Is there enough privacy for your preferences? Do you hear dogs barking or other noise?
If you have any concerns but still wish to proceed, that's fine! Along with a general inspection, your agent can bring in pros to complete a sewer scope, radon testing, mold testing, chimney or foundation inspection, even inspections for lead paint and asbestos.
Once any issues are discovered, you can then decide to walk away or renegotiate the contract. Typically, that means having the homeowner perform repairs prior to you taking possession, or purchasing at a lower price so that you can coordinate the work on your own. Your agent can explain the options, put together the paperwork, then negotiate and advocate on your behalf.
If you'd like to speak to one of our professionals, please don't hesitate to get in touch.