More than half of the homes sold in Denver offered a concession

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Now that the election is over, Colorado’s housing market appears ready for buyers this winter. And with two interest rate cuts since September, that seems logical.

But the traditional mortgage interest rate with a term of 30 years amounted to 7.05% on Friday, down from 6.98% a week ago after the Federal Reserve cut interest rates. And even though more homes were listed for sale – and sold – in the past month, house hunters may continue to wait as average sales prices top more than half a million dollars. Colorado’s median sales price rose 2.3% to $583,000, while metro Denver stayed put, up just $10 – yes, $10! – to $625,000 compared to a year ago.

“Affordability is a challenge and has been at the highest level of concern in recent decades,” said Cooper Thayer, Denver-area real estate agent with The Thayer Group. “One of my specific concerns is the condo market, which has really struggled.”

Higher condo fees have discouraged buyers from looking for something more affordable than a single-family home. In Denver, average condo sales prices fell 6.5% to $402,000, while the number of sales fell 12.9%. Statewide, apartment prices fell 4.5% and sales fell 5.1%.

But what’s not showing up in Denver County’s numbers could be a good sign for overpriced house hunters. The county saw a 37.6% increase in home sales in October, and 55% of closed transactions had some type of seller concession, Thayer said. The average was $8,760, which could be anything from an interest buydown or the seller covering closing costs or the cost to repair items after an inspection. Concessions do not always affect the sales price and do not appear in the monthly data.

“Because half of the transactions had a concession,” Thayer said, “if you reframe the way you think about prices and put it into a net figure, it may actually be slightly lower than the prices that are reported. ”

In the Denver metro area, which includes neighboring counties, sellers also got just 98.5% of their asking price. In the height of the pandemic, as buyers competed for homes and outbid each other, the average sales price was 105.5% above asking price in May 2021, according to data from the Colorado Association of Realtors. Statewide, homes sold for 98.3% of asking price.

Other real estate agents reported similar trends pointing to a buyer’s market, according to the latest report from the Colorado Association of Realtors. Sellers were negotiating “and lowering their prices to get their homes sold before the snow flies,” said Dana Cottrell, a real estate agent in Summit County. Inventory for Summit, Park and Lake counties rose 30%, while average prices fell 13%. But affordability is relative in the Cottrell area: the average sales price in Summit and Park counties was more than $1 million.

Jay Gupta, a Colorado Springs real estate agent, noted that 44.2% of active homes for sale saw their prices drop in El Paso County last month, while Teller County saw prices drop 30.7%.

“Buyers currently have excellent opportunities thanks to high inventory levels, motivated sellers and declining interest rates,” Gupta said in a press release.

But affordability is still one of the area’s biggest issues, said Patrick Muldoon, principal of Muldoon Associates in Colorado Springs. In El Paso County, the median sales price rose 2.1% in a year to $475,000, while condo and townhouse prices fell 1.9% to $330,000.

“From my side, it’s crickets. Some of it may be the mental side of the election. But I believe it’s still affordability and economics. Buyers have settled,” Muldoon said in an email, adding that showings have been delayed as a result. “I don’t think I’ve ever seen such stagnation in the housing market. Nothing happens.”

There was a large increase in the number of homes sold last month compared to a year ago. There are two reasons for that, Thayer said. October 2023 was brutal. The number of homes sold in the Denver metro area fell 17.4% from a year earlier to 2,784 sales. So the 22.1% increase last month to 3,467 sales puts activity closer to the level of two years ago.

Some pre-approved buyers jumped into action last month when mortgage rates reached a low to mid 6%. Some lenders offer to “float” the interest rate for 30 days, allowing the buyer to lock in an interest rate within a month if rates were to drop.

“What happened during that period was we had a bunch of houses under contract, and the lenders varied the interest rate, and then all of a sudden the interest rate went down for a week, and everyone went along with it,” Thayer said. “Those weekly moves may have some impact on the market (but) don’t really impact the overall trend.”

➔ Around the state: Here’s what Colorado real estate agents are saying about October activity. >> Read CAR blog post

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Stories about the solar economy you may have missed

➔ US Forest Service will not hire seasonal workers next year, but will rely on Colorado volunteer groups to “fill in gaps” With an unclear 2025 budget, the Forest Service does not plan to hire seasonal workers next year and warns volunteer groups not to expect major projects >> Read story

➔ Trump’s second presidency could mean big changes for health insurance in Colorado. Repealing or substantially rewriting the Affordable Care Act could upend a number of policies in the state, while changes to Medicaid could also be far-reaching >> Read story

➔ A centuries-old practice allows people to use more than their normal amount of water from the Colorado River. Researchers say this has to stop. >> Read story

➔ Denver Broncos are about to offer fans faster internet at Mile High Stadium. Who uses mobile phones at football matches? More Broncos fans than ever as Empower Field at Mile High upgrades wireless technology. >> Read story

➔ UCHealth agrees to $23 million settlement with FBI over false billing allegations. The Colorado US Attorney’s Office alleged that the health care system overbilled for certain emergency care. UCHealth denies the claims. >> Read story

➔ The Denver heat pump incentive targets multifamily and commercial buildings for more efficient heating and cooling. Shops, offices and apartment buildings are lining up for $7.5 million in aid to lower monthly utility bills by installing new systems >> Read story

Other working bits

➔ Cannabis company Pueblo will pay the state $225,000 for false claims and lying. The Bee’s Knees CBDs and its owner Joseph Leyba have reached a settlement with the Colorado Attorney General’s Office after an investigation found that the Pueblo cannabis company called some of its products “organic” that were not, failed to verify customers’ ages online and talked about it had lied supporting conservation groups. Bee’s Knees must pay $225,000 in civil penalties that could more than double if the company doesn’t fully comply. >> View settlement

➔ Have you been towed? More than 5,000 consumers are receiving checks in the mail after being identified as victims of an illegal fee collection by Wyatts Towing, which bought this week. This was announced by the State Public Prosecution Service A $1 million settlement at the end of last year and announced this month that the checks are now underway. >> The frequently asked questions

➔ Larger loans for disadvantaged smaller businesses are now available. As a recipient of $60 million Tax credit for new markets The U.S. Treasury Department grant will allow the Colorado Enterprise Fund to finance larger projects than its typical $10,000 to $1 million capacity. CEF is a community development financial institution that administers market rate loans backed by federal and philanthropic grants or investors. The loans are intended for lower-income or underserved communities and small businesses that may not qualify for a traditional bank loan. A recent $7 million donation to CEF came from philanthropist MacKenzie Scott. >> Details, inquire

➔ Fort Lupton College receives funding to train 38 truck drivers. Two programs at Aims Community College in Fort Lupton offer training to new truck drivers who need a commercial driver’s license to get decent jobs. A $137,560 grant from the U.S. Department of Transportation will provide driver safety training for 38 students to obtain their CDL. A second program is aimed at non-native speakers of English who are looking for an opportunity as a professional truck driver. >> Apply

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