According to the latest Market Trends Housing Report and analysis from the Colorado Association of Realtors (CAR), the typical fast-paced spring housing market never really materialized as higher interest rates and a less than eager group of potential sellers kept transactions limited and prices steady.

Despite the ongoing challenges, a smaller pool of buyers were able to be a bit more selective as homes were sitting on the market a little longer and home shoppers enjoyed a bit of time to analyze the market and seek out desired amenities and conditions. Average days on market hit 26 for the seven-county Denver area and 37 for the entire state, with the “over-asking price, bidding war mentality” of the past few years turning to a “list-price to sale-price ration right at 100%” — meaning, the asking price is the sale price.

The combination of conditions in June continued to drag down the CAR Housing Affordability Index, a measure of how affordable a region’s housing is based on interest rates, median sales price, and median income by county. The index for all property types dipped again from May to June and sits at an all-time low for the seven-county Denver-metro region (48), and the statewide index of 51 is the second lowest since CAR began tracking in 2010. A value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index of 48 signifies that a family earning the median income has only 48% of the income necessary to qualify for a mortgage loan on a median-priced home, assuming a 20% down payment.

There is good news for buyers in that there are more negotiations happening with price and inspections, as well as good news for sellers that the market demand is often delivering a sales price that is close to the list price and still some multiple offers. The realities remain that with inventories constrained and new listings declining, affordability will continue to be a challenge.

Is this the year you become a homeowner in the Denver metro area? There’s only one way to find out. Contact Metrowest today and let’s discuss your options!