The Denver metro real estate market is staying cool as 2022 comes to a close.
Properties are being listed for longer, and home prices are up nearly 5% from this time last year. Sellers, as they typically do, are waiting till the New Year to put their homes on the market.
If the past few years have seen a trajectory of jaw-dropping price hikes, this year saw that trend slowing down. And Denver metro realtors are holding back on predicting too much of what the 2023 real estate market looks like, according to the Denver Metro Association of Realtors December Market Trends Report.
This month’s report, which looks at the market in the 11-county metro area at the end of November, acknowledged media concerns about whether the housing market is crashing. The association used the document as a chance to emphasize the stability of the market.
“The Denver Metro housing market is changing,” wrote Libby Levinson-Katz, chair of the Denver Metro Association of Realtors Market Trends Committee, in the report. “The question on everyone’s mind is how long this change will last and what to expect next year. Most of the answers are tied directly to when we will see relief from increasing mortgage rates that have more than doubled since January.”
As of Monday, 30-year mortgage rates were around 6.4% in Denver, which is lower than they were at the end of October when they passed 7%.
In a couple months, Denver will have a better sense of the direction real estate is actually headed.
“Ultimately, the spring market will be the best indicator of what the New Year will have in store for us, but the Denver market continues to exhibit stability as showcased in the data this month,” Levinson-Katz wrote.
The median price of a home is currently about $565,000.
Houses are at $615,000 and attached homes, like condos and townhomes, are at $410,000, according to the association’s data.
Homes are staying on the market for an average of 34 days, up almost 127% over the past year.
At the end of November, there were 6,253 homes for sale, up around 178% from this time last year but down by more than 14% since the end of October.
“While our inventory has increased from last year, we are still witnessing the typical end-of-year inventory decrease, which is a direct result of homeowners choosing either to wait to list their homes until the New Year or remove their properties ahead of the holiday season opting to decorate and celebrate their last holiday season in their current homes,” Levinson-Katz wrote.
Properties under $500,000 were the fastest moving in the housing market, according to realtor Molly Zimmerman. These homes also saw the fewest price reductions after they’ve been listed.
“Naysayers take note,” Zimmerman wrote. “Even amongst rising interest rates and seasonal slowdowns, there are buyers in the market ready to make purchases.”