Denver metro home prices continued to rise in April; however, we’re starting to see some signs of stabilization.

According to the most recent report from the Denver Metro Association of Realtors (DMAR), the metro area’s housing market saw the average price of a single-family home in the metro area spike to $825,073 in April, a 3.93% increase from March. 

Interest rates had the most important effect on the supply and demand of homes last month, with interest rates on mortgages at approximately five percent affecting homeowners’ desires to sell right now. But with interest rates climbing, homebuyers are less likely to get into aggressive bidding wars, according to the report. 

Meanwhile, buyers were still willing to pay well over the asking price to lock in their new homes, as has been the case for the past few months. The ratio of close price to list price for detached homes was 107.29%, according to the report. 

Low inventory has been a theme in 2022; however, April was an improvement as the Denver metro area had 610 more properties on the market this April compared to April 2021. Compared to a typical 8.59% increase in month-over-month inventory, April saw a massive 44.26% increase. At the end of April, Denver had 3,204 active listings, a 44.26% increase from March of this year, as well as a 23.52% year-over-year increase. However, with last year setting the record low of 2,594 active listings in April 2021, inventory still has a way to go to reach the average of 14,596 active listings (1985-2021). 

Andrew Abrams, DMAR’s Market Trends Committee Chair and area realtor noted that in the chaos of the recent market, buyers had been waiving their inspections, doing full appraisal gaps and even offering to make their earnest money non-refundable before getting an inspection. Now, he said, we are shifting to a more responsible market. There will still be bidding wars, appraisal gaps and limited inspection items on future properties, but the frequency of those will be less.

If you’re ready to see what the Denver metro housing market has to offer, now is a great time to test the waters. Give Metrowest a shout today – we’d be happy to show you around!