Home sales

Denver Home Sales Down September 2022 Update

Last month the Denver Metro Association of Realtors reported that home sales in the area are finally moving into a buyers’ market after a long period of bidding wars and rising prices – and its Last update indicates that this trend may increase. But a less severe sticker shock didn’t prevent overall sales from plummeting.

One possible reason: While the average cost of a single-family home in the metro area in August fell by more than $30,000, to just under $745,000, the median price of $645,000 represents a drop of less than from 1 %.

The survey focuses on Greater Denver, an eleven-county area that includes major metropolitan counties as well as contiguous counties such as Gilpin, Clear Creek, Park and Elbert. In August, the average price for a single-detached home in this region was $744,589, down from the adjusted figure of $778,793 in July. But the median price fell from $650,000 in July to $645,000 in August, a drop of just 0.77%.

Clues to this modest decline can be found in other DMAR statistics. For example, new listings in August were 3,694, down 18.92% from July’s 4,556. Similarly, active listings at the end of August were 5,298, down from 5,650 through July, indicating an effort by sellers to balance supply and demand. But August’s 2,944 sales still mark a drop from July’s 3,147.

Such developments are relatively common in late summer on the Front Range. Still, a graph in the report constructed with numbers from January 2008 to July 2022 reveals that active listings at the end of the month had not exceeded total closings in the two years to July.

The yellow line is active listings at the end of each month, while the blue line shows sales that closed in the same time periods:

The average cost of a detached home in Denver topped $700,000 for the first time in May 2021, en route to a record high of $728,385 in June. This was followed by a few round trips: $687,176 in July, $685,832 in August, $688,629 in September and $684,700 in October.

But in November and December, the average broke through the $700,000 mark again, landing at $704,716 by the end of the year before dropping back down to $688,127 in January 2022. This decline, however, proved short-lived: the February 2022 average, adjusted to $738,472, was the highest on record by the DMAR, and March reached $793,836. But April’s figure of $825,073 left that in the dust, and a drop in May to $803,835 was quickly followed by a rise of over $3,000 in June before prices fell in July and august.

Meanwhile, the average number of days single-family homes lingered on the Multiple Listing Service, or MLS, was twenty in August, nearly a week more than the fourteen in July, and the stay median increased from seven days in July to twelve in August. Even more significant: the typical closing price last month was 99.16% of the list, the first time that figure has fallen below 100% in at least a year.

Andrew Abrams, a local real estate agent who chairs the DMAR Market Trends Committee, is not panicked by these developments. “While some people will take this as a sign that the real estate market is about to collapse, Denver Metro has seasonality in its market and this is an example of that,” he said in a statement, but acknowledged. that “with so much instability in the economy and the world as a whole, it is difficult to predict the impact on the housing economy. Interest rates remain the most important factor in their impact on buyer demand as it directly correlates to monthly payments. To fight inflation, interest rates will continue to be a topic of conversation.”

Click to read the Denver Metro Association of Realtors September 2022 Market Trend Report.