Denver Housing Market Continues to Balance this Fall

According to the most recent data from the Denver Metro Association of Realtors (DMAR), market stats for October continue to indicate that the Denver housing market is no longer in flux. The real estate market here has become more balanced.

As we return to normalcy, active inventory fell slightly to 7,290 properties on the market at the end of October. However, this represents a 115.94 percent gain year on year. While there appears to be an increase, the current inventory is still lower than the pre-pandemic inventory of 8,557 active listings in October 2019. Rising inflation and interest rates are certainly altering the market picture, as proved by a 26.73 percent drop in new listings from the previous month and a 27.92 percent drop year over year. As a result, average and median sales prices in Denver Metro fell for the first time this month.

As economic uncertainty keeps some buyers at home, the market is becoming more balanced. All significant statistical indicators point to a market slowdown in the Denver area. A market with three to six months of inventory is considered balanced. A market with more than six months of inventory is considered a buyer's market.

In Denver, the months of inventory for single-family detached residences is 3.43, while attached properties have a month of inventory of 3.08. The Luxury Market offers the most months of inventory of any price range. This shift indicates that the demand for this sort of property has declined proportionally more than the supply. Buyers now have more negotiating leverage when it comes to appraisal and inspection disagreements, thanks to the extra months of inventory.

Is now the right time to become a homeowner in the metro area? While not a perfect climate, it certainly is looking a bit better for buyers in the Mile High. Give Metrowest a shout today – we’d love to discuss your options!