Denver Market Trends for July

According to the latest trends report from the Denver Metro Association of Realtors (DMAR), as month-end active inventory skyrockets, the Denver Metro hit a new record for the average price of attached properties at $504,193. At the end of June 2021, Denver Metro ended with 3,122 properties on the market. It has now almost doubled that amount over the year, with a total of 6,057 properties currently sitting on the market.

Though inventory is up, buyers are feeling the challenges of the economy. Many first-time homebuyers who were initially pre-approved towards the beginning of the year with a specific interest rate decided to wait to buy until it wasn’t as competitive. But, when they restarted their search in May, they found that it was with an increased interest rate.

On the other hand, many sellers may have closed on a home earlier in the spring, meaning they went under contract with a certain interest rate, but decided to wait to sell their own home until they moved into their new one. What they are seeing is a longer time on the market and potentially slight price reductions.

DMAR says that as we enter the second half of 2022, there is less competition for those getting into the market, but the cost of waiting has been significant for many first-time homebuyers. Interest rates are perceived to be high now, but may very easily continue to increase if inflation doesn’t decrease at a more rapid pace. With the 65.85 percent increase in inventory compared to the previous month, Denver Metro should expect more balance and multiple months with prices not going up. This is reflected in months-of-inventory, which is now at 1.19, the first time it has been above one in months since June of 2020.

If you’re looking to become a homeowner in 2022, don’t let current interest rates scare you off. While they are higher than the beginning of the year, there is more inventory and less competition for housing, which is a plus for buyers. Contact Metrowest today and let’s discuss your options!