It is a good question, but as best I can tell 3 things:
Buyers are skittish to get into a bidding war, and interest rates got so low for a while, then rose about 1%; not a lot but any excuse not to do something is a good one for a nervous buyer.
Asking prices of homes got a little bit higher than the buyers liked too quickly and buyers have started to feel they were priced out of the market. A normal human response is they are not wanting to embarrass themselves by “low balling” an offer.
This year we have had a season of fires and floods here in Colorado. Some folks are distracted by that news much as I have been! But seriously, I closed a transaction this last week where a supplemental inspection for flood damage had to be done, in the Cherry Creek Area of Denver (no flooding there). It was required by the underwriter at the mortgage company because of the FEMA disaster declaration. In the past there were homes we could not get insurance on because of the fires in the state. This distraction will fade.
What is my upshot on this current market condition? Things have not really changed, and for sellers who want to wait it could be worth the wait. Buyers on the other hand may make their own situation worse by waiting further. They should take advantage of the sellers who have not sold in 30 days like folks did the beginning of this year and the historical interest rates. But everyone tells you it is a great time to buy a home.
Finally; sellers need to be honest with themselves about prices, as ultimately that is what will sell a house.
A Full Time Licensed real estate broker since 1985 I go to work everyday for you & your friends, learning about our home town! It could be Highlands Ranch, Lone Tree, Littleton, Castle Rock, Centennial, Englewood, Parker, Elizabeth, Larkspur, Franktown, Kiowa, or anywhere in metro Denver Colorado. Talk to me for real estate advice, properties for sale, multiple listing service, all available at www.DenverRelocation.com. Drop me a note to pete@Denverrelocation.com
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