Denver Metro Area
Affordability continues to be an obstacle for prospective home buyers in the Denver Metro area. Although we’ve seen prices cool since their peak in April 2022, the median closed price for a Denver Metro home is still 34% higher than we saw in February 2020 or pre-pandemic.
Rising mortgage rates combined with high prices contributed to the number of home closings in the Denver Metro area being 27% lower compared to last August. The total sales volume for August was also lower than we’ve seen in the last several years as the number of closings and closed prices cool.
The number of active listings has also seen a shift. At the end of August, there were nearly twice as many listings actively available on the market than we saw in August of 2021 due to shoppers taking more time to submit contracts on available homes.
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What This Means for Your Sellers
Prospective sellers are more reluctant to bring fresh inventory to the market as the days of multiple offers have gone and homes are remaining available longer. The number of New Listings brought to the market was 15% lower in August than we saw last year at this time. With the month-to-month decrease, the number of new listings of homes for sale is the lowest we’ve seen in any August since 2009.
To attract interested buyers, it is essential for sellers to set a competitive listing price.
How This Affects Your Buyers
With more standing inventory and less demand, buyers have more time to look at active listings and submit offers. The median number of days it took a listing to move from actively available in the REcolorado MLS to the Pending status is more than double what we saw last August and four days more than last month.
While the metric for standing inventory is indicating gains, there is still not enough available housing to make up for the years of shortages. Inventory could remain a challenge for prospective buyers as new home builders balance their costs against what buyers can afford.
Although the current market still presents challenges for buyers, there may be some good news in terms of pricing. In August, homes sold for an average of one percent below the original list price. This could be a great opportunity for buyers as sellers are open to negotiate and more options are available.
More Colorado Market Statistics
REALTOR® Association Market Statistics
In addition to the market statistics reports produced by REcolorado, we provide housing market data and collaboratively produce statistics reports with local REALTOR® associations.
