Last month, the most notable change to the real estate market was the remarkable 31% increase active listings. This far exceeds the historical average increase of 7.48% from April to May and breaks the previous record of 26.8% set in 2019. We only saw a slight 0.41% depreciation. However, I expect to see more depreciation as the active listings number continues to climb. Buyers will have more choices, and sellers will have to reduce prices in order to compete.
In positive news for homeowners, Governor Polis and Colorado lawmakers have finalized a deal projected to reduce property taxes by $1.3 billion. This legislation is meant to reduce property taxes, saving the average homeowner approximately $500 and capping future tax increases at 5.5%. This will come as welcome relief to everyone who received the same level of tax bill increases as I did last year!
TLDR: Buyers - especially if the property has been on the market for more than two weeks, let’s negotiate! Sellers - price your house correctly and accept the offer that is most likely to make it to the closing table the first time.
