Despite close to 7% mortgage rates, limited supply drove home prices higher again in May.

Last month, all properties sold in metro Denver had a median closed price of $595,000, up from $580,000 in April. May was the third month in a row to record price increases.

Sellers posted 5,180 listings in May, 8.9% more than the 4,758 available in April.

But that number remains much lower than the 14,895 average for this time of year based on historical data from 1985-2022. May 2006 set the record high with 30,457 listings, while the record low for May fell in 2021 with only 2,075 available homes.

In a monthly report from the Denver Metro Association of Realtors, Libby Levinson-Katz, chair of the DMAR Market Trends Committee, said that due to the lack of inventory, buyers are experiencing a bit of fatigue as they wait for either the perfect home or to uncover a good deal.

With only about one month of inventory, properties don’t last long on the market. The number of days on the market decreased from seven to six from April to May.

The need for specific homes remains high. For example, according to the monthly report, demand for ranch homes or “main level living” in south metro Denver is high, but inventory remains low, so buyers face multiple offer situations, sometimes having to pay over asking with appraisal gaps for this popular home style.

On a positive note, industry pros are seeing a bit of a more cooperative spirit between buyers and sellers. Some report that right now the market is better than ever, with buyers and are working together to create deals where everyone walks away a winner.

That’s not to say that it’s not a competitive environment out there, and buyers need to be prepared to submit strong offers, whereas sellers need to be thoughtful with their listing price in order to get the best price and terms for their homes.

Sellers still need to be conscious about their homes’ quality and price appropriately to adjust for rate hikes. If you’re a buyer in this market, you have the opportunity to be pickier with your choices, but it’s important to not get greedy. There are a lot of opportunities to get a really amazing deal in this market, but it only comes to those who are properly prepared and understand the value of the home they are pursuing.

If you’re ready to become a homeowner in Denver, now is a great time. Give Metrowest a shout today and let’s discuss your options!