Is This a Buyer’s Market?
Our agents get that question a lot right now. The shifts in our market certainly give that impression to the Front Range communities (compared to the hot seller’s market of 2020-2022). In areas where homes were under contract in a matter of days for an extra $25k-100k, it feels like our market has “flipped.” The elevated interest rates caused many buyers to put the brakes on their house search. Home values have dipped in some communities, listings are staying on the market for over a month, offers are at or below the asking price, and such.
If you’re considering listing your home next year, it’s essential to understand the term Buyer’s/Seller’s Market. Just a little education can empower your decisions.
The key to a Buyer’s or Seller’s Market: Months of Inventory (MOI).
When we divide the number of homes for sale at the end of the month by the average number of homes sold (calculated from 12 months of activity), we get the MOI: the number of months it’d take to sell all of the inventory.
For example, Larimer County finished October with 1,809 listings. Over the last 12 months, the area averaged 485 closings/month. This means they have 3.7 Months of Inventory (MOI).
So if no more listings enter the market, it would take Fort Collin’s buyers roughly eleven weeks to purchase all of the homes for sale.
- Under 2 Months = Extreme Seller’s Market
- 2-4.5 Months = Avg Seller’s-to-Balancing Market
- 4.6-6 Months = Balancing-to-Soft Buyer’s Market
- 6.1+ Months = Buyer’s Market
So while the market is balancing (where the market is fair for buyers and sellers), there’s still a significant shortage of listings throughout Larimer County. To become an actual buyer’s market, at least 2,910 homeowners would need to list their homes in one month. It’d take a fairly extreme crisis (like the 2008 housing crash) for the area to become a Buyer’s Market.
Read our comparison of 2008 v. 2025 markets: Our Market Isn’t Imploding: 2008 vs. 2025
This is why a market slowdown doesn’t mean it is a Buyer’s Market. While there are less buyers competing, there are also fewer sellers listing their homes. But if those homes stay on the market for longer while more listings are added throughout the month, sellers can expect to get an offer over months close to their asking price. And buyers can negotiate well for a win-win deal.
But, of course, neighborhood markets can vary.
For example, LoDo (downtown Denver) is a Buyer’s Market. Overstocked with brand-new condos, builders are struggling to sell fast enough. The MOI is over six months, so they are offering incredible incentives and dropping prices to get deals done before the end of the year.
And if you are looking for a single-family home within the foothills of Boulder County, it still could be an extreme seller’s market! The buying demand remains very strong.
So ask your RE/MAX Alliance agent for the hyper-local data about “your market.” And remember, there’s never a “perfect” time to buy or sell. There will always be a con among the pros for you to move forward.
Talking with your RE/MAX Alliance agent will help you weigh all the factors that should determine if now is the right time for you to buy or sell:
– Financial Readiness
– Neighborhood / Communities Preferences
– Family and Lifestyle Needs
– Your Timing and Goals
Your RE/MAX Alliance agent will provide you solutions and resources that can even make what seems an impossible market work for you.
Sources: Colorado Association of REALTORS® & Megan Aller, First American Title