According to the May 2022 Market Trends Housing Report from the Colorado Association of Realtors, buyer trepidation fueled by rising interest rates and inflation fears continued to contribute to an improving bottom line for housing inventory and helped keep median pricing relatively flat across the seven-county Denver-metro area and in markets statewide.

New listings for single-family homes and townhome/condos in the Denver-metro area rose 2.7% between April and May to 6,430 and 2,097, respectively. The inventory of active listings also rose from April to May, 6.9% for single-family homes but just 1.1% for townhome/condos.

Statewide, the 11,169 new listings for single-family homes represented a 3.6% in the past month, with townhome/condos slightly less at 2.3% and totaling 3,044 properties. The statewide inventory of active listings for single-family homes rose 10.6% from April to May and is up more than 18% from a year prior with 8,718 active properties. The townhome/condo market also rose 5.5% in the prior month however, the 1,947 active listings in May are down 23.6% from a year prior and may further reflect the decreased buyer power due to rising interest rates and other rising costs of living.

Median pricing for all property types in the Denver-metro area dipped slightly (-1.5%) in May but maintain double digit percentage increases over the same time last year – up 13.5% for single family and 12.6% for townhome/condos. Statewide, median pricing fell less than a quarter of a percent for all property types but also is still up over a year prior, 15.2% for single-family homes and 13% for townhome/condos.

Buyers should be cautioned; however, that it’s still a seller’s market. The interest rate hike did exactly what it was designed to do – cool a frenzied market that needed a correction. Denver’s real estate market is still steady, appreciating, and healthy. However, in some good news for buyers, the frenzied pace is slowing a bit.

If you’re ready to check out what the Denver metro area has to offer, contact Metrowest today – we’d be happy to discuss your options!