Illustration: Sarah Grillo/Axios
Signs of a slowing housing market persist in the Mile High City, according to the latest data from the Denver Metro Association of Realtors.
Why it matters: After two-plus years of plummeting inventory and sky-high home prices, Denver buyers have waited a long time for a little relief.
Yes, but: Rising borrowing costs are causing buyers to reevaluate their purchasing power daily, local Realtors say.
What’s happening: “We’re starting to move into a balanced market,” Libby Levinson-Katz, chair of DMAR’s market trends committee, said.
- Current buyers have more homes to choose from, and competition has eased. But the leap in mortgage rates has priced some folks out of the market, Levinson-Katz said.
By the numbers: Inventory jumped 93.5% compared to this time last year, per the Denver Metro Association of Realtors’ market trends report for September.
- Meanwhile, pending sales are down 27.9% year-over-year.
- The median sales price rose 9.4% year-over-year, but it’s fallen in recent months.
- In May, the median sales price was $615,000 and in September it was $580,000.
Sellers aren’t getting 100% of their asking price anymore. On average, homes sold for 98.9% of the list price in September 2022.
- This time last year, homes were selling for 101.9% of the listing price.
- Nearly 60% of Denver-area sellers dropped their asking prices in July.
Homes are sitting on the market longer, too. In September 2022, homes sold in 26 days on average, compared to 13 days in September 2021.
What’s next: The market is correcting — not crashing, Levinson-Katz said.
- After the typically quiet holiday season, she expects to see prices flatten out and the days on market continue to increase.