May 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 $682,061 IN MARCH ROSE 2.6% FROM LAST MONTH AND DECLINED 5.6% FROM LAST YEAR.
Quick Stats:
- Average active listings for March are 14,296 (1985-2022).
- Record-high April was 2006 with 20,045 listings and the record-low was set in 2021 with 2,594 listings.
- The historical average increase in active listings from March to April is 10.4 percent. This year’s small increase of 2.3 percent represents the lowest increase since 2014's decrease of 0.6 percent.
The big news is that we saw active inventory increase by a mere 2% last month. To put that into perspective, Denver's inventory typically increases around 10% during the month of April. This slow down is due in part to new listings having decreased last month by 2% when we normally see an increase in supply around this time of year. The lack of motivation from sellers continues as many home owners who are sitting on low interest rates opt not to sell.
In other news, property taxes are making headlines. Colorado has seen an average of 33% increase in property taxes. Between the increased interest rates and people paying more in property taxes, affordable living continues to be an issue in our market.
However, on a positive note, property values went up 2.3% last month, although we are still down 5.6% from last year. Additionally, the overall transaction amount is down 30% year over year. So while transaction amounts have declined, home values are rising as we still do not have enough supply to meet demand.
Where will this lead us? We are still riding the waves that have come out of our post-covid market and therefore cycles are more challenging to predict. Obviously, interest rates are a driving factor in where the market will be by the end of summer, or even the end of this year. Many predictions have come out saying that we may see an extended selling season. Normally, the market cools off at the end of summer but if interest rates level out in the 6’s or even dip down into the 5’s by the end of summer, we’ll certainly see a jump in demand. However, the lack of inventory will remain an ongoing issue.
As always, please reach out with any questions. I am also happy to help with fighting your property taxes by running comps! We’d love to hear from you so don't hesitate to let me know!
