This month’s market report includes analysis of some second quarter data. The second quarter is always good to look at because April, May and June are the busiest months in Colorado real estate.
Home Prices
We’re starting to see a rebound from the moderate price drops that began during the second half of last year.
Compared to June of 2022, we’ve seen a slight increase in the average price for detached homes…
… and a slight decrease in condos and townhomes.
This puts us about level with where homes were selling in June of 2022, which is barely below the all-time market peak of April 2022.
To see how much home values have appreciated since 2019, take a look at this slide. We’ve seen home prices appreciate 43% since June 2019.
Fewer HOmes for Sale
The other noticeable data point is the decreasing amount of homes for sale.
Over the past year, the Denver Metro real estate market has experienced a big drop in new listings as many homeowners have chosen to stay in their current home — with their current low mortgage interest rate
Compared to June 2022, the number of active listings for single-family homes decreased by 16%.
For sellers, this low supply of homes is good news. When buyers compete over fewer homes, prices are driven upwards.
Advantages for Buyers
On the other hand, buyers can find some advantages in the current market.
Homes are taking longer to go under contract. Last year, it took an average of 11 days for a newly listed home to be sold. In June of this year, that period has doubled to 22 days.
Additionally, buyers are encountering fewer instances of homes being sold above their original asking price. During Q2 last year, homes sold for a premium of 4% above the initial list price. During the same period this year homes sold at the average asking price, eliminating the premium.
Buyers are also taking advantage of more seller concessions this year.
During the second quarter of 2022, sellers paid concessions only 25% of the time. This year sellers are paying concessions 52% of the time.
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