Denver Real Estate Market Update August 2022

Denver Real Estate Market Update August 2022

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HOUSING INVENTORY CONTINUES TO GROW!!!

The Dog Days of Summer are coming to a close. The Daylight hours are getting shorter, and The Pandemic Pricing has officially come to an end!

The Prime time for the Denver Metro Housing Market was cut short this year as consumers came to terms with rising inflation and mortgage rates, which caused record numbers of Contract Cancellations in the Resale and New Home markets in May and June, and Buyer traffic slowing down substantially during May, June and July.

The market caught the attention of many Sellers who have now listed their homes quickly over the last two months to try to catch the final innings of the Seller's Market. Recently listed homes have been met with reduced Buyer Showings, Price Reductions, and Seller Concessions to pay for Interest Rate Buy-downs for Buyers as incentives!

- Active Listings for Single Family Homes and Condos/Townhomes at the end of July were 7,361 which is 81% higher than July 2021!

- The number of Closed Homes was down 12.3% Year over Year.

- The number of Active Single Family Homes on the market in July was up 96% from July 2021

- The Days on Market in July increased 44% YoY.

Surprisingly, the Average Sold Prices are still up 14% Year over Year, which still proves the Supply and Demand metrics are prevailing as Supply has increased and demand remains relatively strong.

The Yellow Line has crossed back over the Blue Line! As you look at the very important Graph of “Month End Active Listings and Month End Closed Homes. We have more Active Listings on the Market than the number of Closed Homes for this month. This is normal and a much healthier characteristics of a good Housing Market. We haven’t seen this graph in this position since about May 2020 when the Market consistently Sold more homes each month than were available for Sale!

When the Housing Market slows down early in the Summer after a very active Spring Market, as has happened this year, we will usually have a rise in Buyer Activity in the early Fall! We should see an uptick in Home Sales after Labor Day through October!

If you are a Seller, please price and prepare your home properly for this Fall Market!

If you are a Buyer in this market, the Buying opportunities may be the best we have seen all year!

Enjoy the end of Summer!