Desperate homebuyers may finally have reason to celebrate — or at least properties to explore. There are 6,057 condos and houses for sale in the metro area — 93.01% percent more than were available at this time last year, according to the Denver Metro Association of Realtors‘ latest market trends report.
That’s still not a glut of houses and condos to choose from, but there’s more stock than there was in July of 2021, and as a result, prices may soon be dropping, said realtor Andrew Abrams, who heads up the association’s Market Trends Committee.
The median closing price for a home is $615,000, which is up by 12.84% from this time last year.
Though the market has been cooling off and prices may soon drop, lower prices don’t necessarily make for a better deal for homebuyers now than if they were in the market a year ago. After all, mortgage rates have climbed from record lows in recent months, as the Federal Reserve has tried to combat inflation with the highest interest hikes in 40 years. Currently, interest on a 30-year mortgage in Denver is 5.55%.
With those higher rates, buying power is lower, said Abrams. Homes are in the market for a median of 10 days, according to the report. Homebuyers have significantly less competition than in recent months, as higher interest rates are keeping some potential buyers out of the market.
Colorado, as a whole, is experiencing an exodus, according to the Market Report. “U-Haul says its Colorado teams are seeing a stream of one-way outbound moves this year.”
United Van Lines observed a similar trend, noting Colorado has shifted from an in-bound to an out-bound move state.
The year-over-year rise in inventory in the market, generally, is not reflected in homes priced between $300,00 and $499,999. While inventory in that price range grew from May to June, there are still 54.25% fewer homes in that range on the market now than there were in June 2021.