According to the June report from the Colorado Association of Realtors (CAR), low inventory and higher mortgage rates slowed Colorado’s typically strong spring housing market.

The number of new single-family homes listed statewide last month dropped 24% compared to June 2022. The number of sold listings dropped 21% year over year. But the median sold price dropped only 1.1% to $583,125 in June from $589,500 in June 2022. Sellers received roughly 100% of their list price last month compared to 102% in June 2022.

While the housing market may appear frustrating, it is showing signs of stabilizing as buyers adjust to the new normal of higher interest rates.

In the report, Douglas County realtor Cooper Thayer said that while a slowing market may appear concerning on the surface, it’s crucial to remember that the fast-paced, expensive conditions we’ve experienced over the past few years have been abnormal, and these changes are best characterized as a normalization of the market.

However, industry insiders agree that the lack of inventory will keep housing prices high.

A key to addressing that issue could be new construction. In May, housing starts rose by 21.7% from April levels, according to a report from the U.S. Census Bureau.

Housing starts in May represented their highest level since June 2018. Single-family housing starts increased 18.5% to a seasonally adjusted annualized rate of 997,000, and multi-family housing starts climbed 27.1% to an annualized 634,000 pace.

Most real estate pros agree that for the rest of 2023, the market will continue to balance. All in all, despite data showing that there are dips and descending figures across the board, things are beginning to go very well for the Denver market.

If you’re looking to become a homeowner this season, contact one of the experienced professionals at Metrowest – we’d love to explore your options!