If today’s housing market feels different than it did a few years ago, it’s because it is.

During 2020 and 2021, mortgage rates hovered around 3%. Buyers had tremendous purchasing power, inventory was scarce, and Colorado homes often received multiple offers within days. Paying over asking price became common, and pricing mistakes were easily forgiven.

That market is gone.

Today, mortgage rates sit around 6.7%, and buyers simply can’t afford what they could just a few years ago. That doesn’t mean people stopped wanting to buy homes. It means the buyer pool got smaller.

Homes don’t sell simply because they’re for sale. They sell because there are qualified buyers who can afford them. As affordability declines, sellers are now competing for fewer buyers.

The local numbers tell the story. According to REColorado, more than 76,000 homes sold each year across the Denver metro area during 2020 and 2021. By 2025, annual sales had fallen to just over 52,000, about 26% fewer sales than before COVID. Meanwhile, inventory has grown to more than 12,700 active listings, giving buyers more choices than they’ve had in several years.

The spring rush has come and gone. Buyers have more time to compare homes, and they’re becoming more selective. Some homes still receive multiple offers and sell within days. Others sit for weeks before the price comes down. The surprising part is, those homes may be only a few streets apart.

Real Estate Has Always Been Local

One of the biggest misconceptions is that there’s one real estate market. There isn’t.

National headlines make for interesting conversation, but they don’t determine what your home is worth. Local buyers do. That’s why one neighborhood may still see multiple offers while another, just a few miles away, sees longer marketing times and more price reductions. Even homes on the same street can have very different outcomes.

The only market that matters is the one your home is competing in today.

“Let’s Just See What Happens”

Those may be the most expensive words a seller can say.

When more than 76,000 buyers were purchasing homes each year, testing the market carried much less risk. Today, every showing matters more.

A home gets one chance to make a first impression. If buyers don’t see value right away, they move on to the next listing. Momentum fades, showings slow, and price reductions follow. Many sellers discover that “testing the market” ends up costing far more than pricing correctly from the start.

The good news: this isn’t a bad market. Well-priced, well-presented homes are still selling quickly. In fact, homes that sell are averaging about 99% of asking price. Buyers are still willing to pay for value. They’re just no longer willing to overpay.

That’s what today’s market rewards. Not luck. Not wishful thinking. Good decisions.

What This Means for You

If you’re selling: The buyer pool is smaller than it was a few years ago, but that doesn’t mean your home won’t sell. It means pricing, preparation, and understanding your local competition matter more than ever. Don’t price your home based on what your neighbor got in 2022. Price it based on today’s competition and today’s buyers.

If you’re buying: More inventory doesn’t mean every seller is desperate. The best homes, priced and presented well, are still moving fast. Today’s advantage is having more choices and more room to negotiate than buyers have had in years.

Markets don’t stand still. Interest rates change. Affordability changes. Buyer behavior changes. Successful buyers and sellers recognize those shifts and adjust their strategy accordingly.

The market has changed.

Have you?

Markets change. Life changes, too. Your Forever Agent® helps you adapt to both with guidance that’s based on today’s market, your goals, and what’s right for you. Call 303-905-8850 or visit BHHScoloradorealestate.com.