The Greater Metro Denver housing market continues to sizzle across most price ranges, surpassing pre-pandemic levels. The persistent heat can be attributed to a scarcity of available homes as homeowners are reluctant to sell, causing a limited inventory. However, we expect the inventory to gradually increase and peak during the summer months.
Notably, there has been a noticeable decline in buyer demand due to interest rates hovering around 7%. Homeowners are understandably cautious about making a move amidst these higher rates. As a result, year-to-date closings have seen a 22% decrease compared to the previous year.
While the overall market still favors sellers, the balance shifts towards buyers as the sales price increases. Single Family Homes priced below $500k are experiencing a scorching hot market, with a projected market time of just 15 days. However, as prices climb beyond $1.5 million, the market gradually slows down and transforms into a slightly favorable position for buyers, particularly for properties priced at $3 million and above.
In conclusion, it's crucial to understand that the Greater Metro Denver housing market varies significantly depending on the price range, especially in the luxury segment. Regardless of the price, accurately pricing homes is essential for achieving successful sales.
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New Listings
1,511 fewer new listings entered the market this May when compared to May 2022. Many homeowners are staying rooted in their homes because they have a much lower mortgage rate compared to the current rates. The difference between their existing rate and today's prevailing rate is significant, making it difficult for homeowners to consider selling their homes and moving to a new one. As a result, they continue to hunker down for the time being, choosing not to list their home for sale.
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Supply - Active Listings
Active listings experienced a 1.7% increase compared to the previous year but dropped 1.3% when compared to last month
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Demand - Pending Sales
Demand was down 24.4% year-over-year but up 2.1% compared to last month. We are still well below prior years.
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Percent of Closed Price to List Price
In May, the closed price to list price ratio was 100.5%, a decrease of 4.8% compared to the previous year. It was up slightly when compared to last month.
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Average Days in MLS
The average number of days on the market decreased to 21 days, representing a 25% reduction compared to the previous month, and a substantial 133.3% year-over-year increase. This data point illustrates that inventory continued to move fast when comparing month-over-month.
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Reports based on data from REColorado®, Inc.
GREATER METRO DENVER INCLUDES THE FOLLOWING COUNTIES:
- Arapahoe, Adams, Broomfield, Denver, Douglas, Elbert and Jefferson
- Reports are based on information from REColorado®, Inc. for the period shown in title. Note: This representation is based in whole or in part on content supplied by REColorado®, Inc. REColorado®, Inc. does not guarantee nor is in any way responsible for its accuracy. Content maintained by REColorado®, Inc. may not reflect all real estate activity in the market. •Information deemed reliable but not guaranteed.
- © 2020 Land Title Guarantee Company. All rights reserved.
Mortgage Data Source: Freddie Mac
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