June Market Report - Metro Denver
Last Month's Key Statistics
for Denver's Real estate Market
Attached & Detached Single Family Homes
THE AVERAGE SALES PRICE OF $697,534 IN MAY ROSE 2.7% FROM LAST MONTH AND DECLINED 2.3% FROM LAST YEAR.
Quick Stats:
- Average active listings for May are 14,895 (1985-2022).
- Record-high May was 2006 with 30,457 listings and the record-low was set in 2021 with 2,075 listings.
- The historical average increase in active listings from April to May is 7.1 percent. This year’s increase of 13.2 percent represents a healthy increase but is far off from our record 26.8 percent in 2019.
Hey everyone! Zach here, bringing you this month’s market report. First off, we saw appreciation up 2.7% during the month of May and down 2.3% year over year, which tells us we are recovering some of those losses that we saw last year. Additionally, supply is low and demand is low, but our ratio of supply and demand is holding steady at 1.3 months of inventory, leaving an imbalance in our market where there is notoriously not enough supply to meet demand.
So I want to touch on three points here:
- Rates. The problem isn’t simply that we’re still seeing high interest rates. The problem is our volatility, as we saw rates go from the upper 6’s to the low 7’s and back down to the high 6’s at the end of last month. It’s the volatility that is posing a challenge for buyers. Buyers are moving slower in hopes to see rates dip a bit lower in the later half of this year, as many are predicting.
- Rhythms. Expected rhythms for our market have been thrown off by the rise in interest rates and economic uncertainty. Typically, we see a very strong selling season in the spring and this spring did not deliver and in effect, failed to launch. It’s going to be interesting what the rhythm will be for the remainder of the season. Normally, we slow down heading into summer - toward the end of summer, especially. Though, if we see rates continuing to lower, we may have a mini selling season spike in our third quarter.
- Reasons. During the pandemic, people were buying because they wanted to. Now, people need to buy or sell a home because they have to. Like I said, if we do see that drop in interest rates, I think we are going to see buyers move more quickly because they want to.
Needless to say, the biggest shift in our market is buyers and sellers transacting not because they want to, but because they have to. If you have any questions about your specific market or needs, as always don’t hesitate to reach out!
