Denver Metro Real Estate Market Update

Do you ever look at real estate stats and wonder what in the world does that mean? Sometimes looking at month to month stats can seem meaningless since real estate can be a much more slow moving in terms of trends to watch. One thing that's helpful for me is to take a step back and take a look at "year to date" stats in comparison to the same time frame for recent years. Now that we have Jan-June numbers (we're halfway through the year already!), it makes sense to look at those year to date stats and see how much our real estate market has been affected by the dramatic rise in interest rates (the obvious culprit).  

Here's what we're seeing YTD compared to the same period last year:

8,175 fewer listings have hit the market

6,493 fewer closings

The closed price average is $15,909 less

The average Days in MLS is 21 days longer

The average discount is -.2% (last year the average was a 4.9% premium)

Is the real estate market in a "recessionary" environment? I'd say so based on transaction count across the metro area...

But....

Inventory is still at extremely low levels. We're still at around 1.3 Months of Supply which is very much a sellers market. (Homes priced above $1.5M are seeing inventory approach more of a balanced/buyer's market)

Can prices actually fall in a low inventory environment like this? I don't think they can fall dramatically when buyers are still in the market absorbing the inventory. Sales may be happening more slowly, but they're still happening. 

What's next? The summer market is usually defined by peak inventory levels so more options for buyers. We'll see how July and August pan out!

What are you seeing out there in the Denver metro area? I'd love to hear from you! 

- Drew