Colorado Housing Market Remains Stable Amid Low Inventory and Interest Rates
Colorado’s housing market maintained a relatively stable position in July despite higher interest rates and limited housing availability.
According to the recent Market Trends Housing Report by the Colorado Association of Realtors, the inventory of single-family homes in the Denver metro area, comprising seven counties, saw a 3% decline between June and July. Compared to July 2022, the inventory is currently 28% lower.
Matthew Leprino from Remingo commented, “Denver’s real estate market numbers for July are intriguing. The median price for homes has been consistently lower in the past seven months, which aligns with the overall metro and state data. However, the parallel drop in demand is unexpected.”
Statewide, active listings decreased by 1% compared to the previous month and saw a decline of 19% from July 2022.
Dana Cottrell from Summit Resort Group Real Estate added, “July exemplifies the unpredictable nature of our market. While we were experiencing a trend of fewer sales compared to the previous year, July witnessed a 33% one-year increase in sold listings. Despite an 8.7% drop in active listings, the month of July deviated from the expected patterns.”
In the Denver metro area, new listings for all property types fell by 24% since July 2022. Statewide, the decline was over 21%. Correspondingly, closings were down 17% and 16%, respectively.
Kelly Moye from Compass-Boulder highlighted the ongoing challenge of limited housing inventory, stating, “The scarcity of homes on the market remains a significant obstacle, with sellers holding onto their properties and pricing them competitively. In Boulder County, where there is only 2.8 months of inventory available, buyers face limited options. Nonetheless, they are patiently waiting for rates to decrease.”
Meanwhile, the average days on the market increased to 26 in the Denver metro area, representing a significant 73% increase from July 2022. Statewide, the average days on the market grew to 37, up by 43% from the same period last year.
Patrick Muldoon, a realtor in the Colorado Springs area, concluded, “This market is one of the most peculiar I have witnessed in a long time, possibly even unprecedented.”
In the Denver metro area, the median price of single-family homes experienced a seventh consecutive monthly drop, settling at $625,000. Statewide, prices followed suit by declining for the sixth month, with the median price for a single-family home statewide resting at $578,250.
According to Sunny Banka, a realtor from the Aurora area, the market remains active despite the drop in prices. Low inventory persists as a result of sellers being hesitant to relinquish their low-interest mortgages. Slight pricing adjustments are attributed to increases in interest rates, while the average time for a property to stay on the market has extended by a few days. These developments contribute to a more balanced market outlook.