July Market Report - Metro Denver

Hi there, Zach Florence here. I hope you had a great holiday weekend celebrating July 4th! During the month of June, we saw an increase of average price of 3% which brings our total increase of average price to a whopping 12% appreciation, just in the first six months of 2023. That has almost recovered all of our losses from Q3 and Q4 of last year. Thus, our annual appreciation as of now is essentially flat. Now, that sounds like a hot market! In one sense, it is. However, our transaction volume is down 23% from last year, which is very significant. 



So, how is the market? It’s both hot and cold. Prices have been going up due to our lack of supply; however, transaction counts are down because many people are sitting on the sidelines. Many sellers are holding onto their property with their low interest rates and many buyers are waiting for interest rates to come down. 

So, what does the rest of the year look like? If you could tell me what interest rates will do, I could tell you what the rest of the year will look like. Many are hoping for interest rates to come down, which would spur on buying activity. Though as of today, Friday July 7th, we just hit our highest interest rates of the year - well into the 7’s - due to some strong economic data reports that have come out. Needless to say, I don’t know exactly what the rest of this year holds. If rates come down, I expect to see a strong selling season in the later half of the year. If rates continue to push higher, that will certainly slow things down. As always, don’t hesitate to reach out with any questions you may have for your specific needs!