Although the home buying season is well underway, the housing market is not moving as swiftly as in previous years due to higher prices and increasing interest rates. The number of homes that closed in May was 3% lower than this time last year and the number of contracts written on homes was 24% lower than last May.
The median closed price for a home in the Denver Metro area is 3% lower than last May; however, we’ve seen 4 consecutive months of increases. In May, homes closed at 99.5% of list price, indicating a slightly advantageous market for buyers over sellers.
What This Means for Buyers
Many buyers in the Denver Metro area are stuck on the sidelines due to an uptick in mortgage rates, elevated home prices, and limited inventory. However, demand is still strong with available homes being plucked off the market after a median of only 6 days.
Pro Tip: Set your buyer clients up for auto emails in REcolorado Matrix to make sure they’re seeing all the latest properties on the market.
How Sellers Are Impacted
Industry experts estimate that 85% of homeowners are sitting on mortgage rates that are below 6% and, as a result, are choosing to stay in place. This was reflected in the Denver Metro area this May as 25% fewer homes came on the market compared to last year. On the bright side for sellers, there was a 10% increase in new listings from April to May, 12% of which are priced at $1M or more.
Pro Tip: Wow your clients with a Weekly Seller’s Report from REcolorado Listing Metrics!
Rental Market Stats
In May, there were 44% more properties leased using REcolorado MLS than we saw a year ago, which indicates an increase in rental property demand. The median leased price for those properties is more than 7% higher than we saw last year; however, leased price per square foot is lower.
More Colorado Market Stats
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.