The Current State of Denver Real Estate - December 13, 2022

Well we’ve nearly made it out of 2022. The housing market across the country as well as in the Denver Metro area has definitely taken a hit with declining prices, fewer closings, listings and pending sales. The only things going up, are the number of days on market and weeks of inventory! Since December of 2021, prices are still showing a slight median price increase, but that is mostly due to the higher-end housing market still doing most of the heavy lifting, which is driving up the median price. Based on what I’m seeing in the market, prices are back down to where they were closer to October of 2021 for most mid-range priced homes. However, for seller’s that bought well over a year ago, they are still ahead of the game and have equity in their home. For those that bought five years ago, prices are still way up. Affordability is improving for Buyers now too, especially if interest rates begin to stabilize or lower.

The bright spot is Denver statistics aren’t quite as bleak as they are nationwide. There are a few exceptions, such as Florida and Texas, that continue to see rising prices. However, the Denver market, although slumping, hasn’t been affected quite as much by these national statistics:

#1 Existing home sales have now fallen for ten consecutive months.

#2 Existing home sales are down 35.4 months over the last 12 months.  That is the largest year over year decline in existing home sales since the collapse of Lehman Brothers.

#3 Homebuilder sentiment has now dropped for twelve consecutive months.

#4 Home construction costs have risen more than 30 percent since the beginning of 2022.

#5 The number of single-family housing unit permits has fallen for nine months in a row.

We could have a ways to go before you see prices rebound, depending on what interest rates do going forward, but let’s hope the Denver Market stays ahead of the downward curve for 2023.

Click on this Link for the latest housing stats courtesy of SMDRA. November 2022 Denver Housing Trends