Welcome to 2023, friends! I hope you all had a pleasant 2022 with friends and family. It’s a brand new year and it’s always an interesting time in the real estate world. Prices and inventory are usually down until late Spring, and days on market is generally up. It’s a great time for buyers to find the right home and sellers to find the right buyer, as there isn’t as much of an urgency in the Winter. Last month we saw average closing prices decrease 2.69% and median close prices decrease 1.42%. This tracks with the decrease in inventory and a general competitive edge that buyers have during colder seasons.
As 2022 winds down and December comes to end, it’s always a great time of year to pause and reflect on the good, the bad, the comfort we felt, or the struggles that we have overcome or are currently battling. It’s always helpful to find a community that you can celebrate and share burdens with, so it is my hope that you have found one this year – whether it is family or friends, online or in-person. I am thankful for those in my life and wish you all a Happy Holidays! If you would like to chat, don’t think twice, just pick up the phone and give me a call – I’ll be happy to talk about anything you may need!
The snow and cold have finally arrived – I hope you received my Winter Home Checklist in the mail to help you prep your home. I send this out each season. Let me know if you didn’t receive one and I would be happy to send one your way! There’s a lot of maintenance to be done to your home each season, it’s easy to let something critical fall through the cracks. With that reminder, let’s take a look at the current state of the housing market.
Spooky season is finally here, something I’m sure all of you with (or without!) little ones have been looking forward to all year. The leaves are changing, the weather is cooling, and the fun decorations are being put up around town. In contrast to the excitement of Halloween, the real estate market has given us no surprises in the last month. Inventory is up and homes are on the market for longer before being sold – both seasonal indicators and give some relief to those looking for their dream home. Prices, however, are still creeping up in most of the Denver Metro Area, continuing to build equity for current homeowners – leading to favorable conditions for both buyers and sellers.
With Colorado’s slow transition into autumn started, we will notice the housing market changing as well. We saw drops in most categories last month, including a 4.39% reduction in the average close price in the Denver Metro Area. As fall approaches, Buyers will be more patient and have more options, and Sellers may need to take a second look at pricing their homes for sale. It’s difficult to predict how the housing market will look in a few months, but higher interest rates will continue to curb the housing demand as these rates directly correlate to monthly payments.
For the fifth month in a row active inventory in the Denver Metro area has risen. Pair that with a 3.33% average close price reduction last month and we are showing more signs of a potential buyer’s market on the horizon. Prices are still up 11% year-over-year, but this is promising news for those looking to find their home here in Denver. The market is normalizing.
June marks another month with a large increase in active inventory, another great sign for buyers looking for better options to fit their families needs. Per the Denver Metro Association of REALTORS® Market Trends Report, “At the end of June 2021, Denver Metro ended with 3,122 properties on the market. It has now almost doubled that amount over the year, with a total of 6,057 properties currently sitting on the market.” Prices have remained relatively consistent the last couple of months as well, due to the increasing mortgage rates – however, rates dropped by an entire half percent in the last two weeks.
Last month we saw active inventory shoot up 13.98%, a welcome sight for many weary buyers. Due to increasing mortgage rates, the Denver Metro Area saw an average and median close price reduction, if only slightly. Unfortunately, it’s still a very tough market for buyers – not only in terms of competition, but in the actual cost of housing here in Colorado. According to NAR’s Chief Economist Lawrence Yun, purchasing a home now is 55% more expensive than it was a year ago.
The sun is out, the birds are singing – it’s been a welcome relief. I hope everyone has had a chance to go out and enjoy the beautiful scenery that Colorado has to offer. As seasons change, the housing market makes its shifts as well. We saw a sharp spike in inventory last month, however prices continued to rise. It should be a busy Spring and Summer ahead!
Spring is right around the corner and will be such a welcome sight after a cold and muddy past few weeks. With the promise of longer and warmer days, the housing market will start its annual warming as well. Just last month we saw a 3.55% increase in inventory, a +5.36% increase in closed homes, and drop in average days in MLS. Average and median close price also sharply increased, although this is also an expected change as we head towards a robust Spring and busy Summer.
Here are a some useful resources that you can download. We will continue to update these.