According to the April Market Trends Housing Report from the Colorado Association of Realtors, this spring’s home buying season is off to a slow start with “atypical, murky and muddy” market conditions due to higher interest rates and new property tax assessments leaving buyers and sellers “dazed and confused”.

With some listings selling in a weekend with bidding wars, and others idle for a few months before a sale, it can be difficult for buyers to comprehend.

Inventory Dropping
The Association’s monthly analysis shows the number of new single-family home listings dropped from 4,575 in March to 4,436 in April across the seven-county Denver metro area, defined as Boulder, Broomfield, Denver, Adams, Arapahoe, Douglas, and Jefferson counties.

The number of houses sold also dropped from 3,534 in March to 3,342 in April.

On the upside for sellers, those who braved the market got an average of 100% of their list price in April, up from 95.5% percent in March. Homes sold faster, too, with the average number of days on the market dropping to 35 in April from 45 days in March.

The median sales price for single-family homes increased to $614,170 in April from $599,950 in March.

Affordability remains at the top of everyone’s mind this year, as monthly housing costs have increased due to rising rates, major tax reassessments, and real discretionary income reduced by general inflation. However, the housing market’s beginning to show some signs of more balance, which should benefit buyers and sellers.

Interest rate changes have certainly been a concern this year, but with buyers paying less this year than last and having the inventory to pay far closer to the asking price the rates have likely been absorbed and are now part of an average buyer’s expectations.

If you’re thinking of making a move, now is a great time to at least start planning. If you want to know more about what your options are, give Metrowest a shout today!