According to recent data from the Denver Metro Association of Realtors (DMAR), the median price of a single-family home sold in metro Denver last month was $600,000, which was down 5.7% from the same month a year earlier. The decline comes after more robust activity in February, including a 0.8% jump in median prices from January.

The annual drop in median sales prices for condos and townhomes wasn’t as large at 1.2%, and the monthly gain was stronger at 1.14%. Average condo prices were still in positive territory at 3.1% on the year. The median price of a condo sold was $400,000.

In January, the median sales price of a single-family home was down 0.68% but the average sales price was up 1.94%, making it too close to call a falling market. But in February, the average price was down 1.4%, putting metro Denver back in the depreciation zone.

Prices peaked late last spring in metro Denver and the robust gains captured early in 2022 are making for some tough comparisons. Metro Denver saw a drop in home prices in May 2020 during the pandemic, but that quickly reversed after the economy reopened. The last time home sales prices were negative was in 2011, when the market was still recovering from the housing bust and Great Recession.

Although price declines create more favorable conditions for buyers by improving affordability, they aren’t good news for anyone who stretched to buy something in the first half of last year with a small down payment.

The number of closings for both homes and condos rose by 22.5% from January to 2,661 in February, but activity remains down by nearly a quarter from the activity seen in February 2022. The number of active listings fell 8.3% over the month to 3,778, the second-largest drop on record. But it is up 208.1% from a year earlier when the inventory of homes for sale was at record lows.

While interest rates are creeping up, the market in Denver may be shifting more towards buyers. If you’re in the market to become a homeowner this year, it’s never too early to start planning. Contact Metrowest today and let’s discuss your options!