Denver Homes Taking Longer to Sell as Buyer-Seller Dynamic Shifts
For-sale homes in metro Denver spent an average of 8 days on the market before going under contract in April, but by September, listings were claimed in an average of 26 days, The Denver Post reports. As interest rates on a 30-year mortgage approach 7%, buyers are beginning to negotiate for lower prices, and sellers are being forced to oblige in order to attract offers.
Elevated borrowing costs are sending the average monthly payment on a typical Denver home to $3,322, which is 78% higher than the typical payment a year ago, when rates were closer to 3%. If rates continue to rise, Denver’s buyer pool could take another massive hit, forcing sellers to make additional concessions to take advantage of limited demand.
A survey that Zillow sponsored found that nearly 7 in 10 prospective buyers would end their search if interest rates crossed above 7%. Mortgage applications to purchase a home fell 14.2% in the week ending Sept. 30 from the prior week. They are down 37% from a year earlier, according to the Mortgage Bankers Association.