Colorado’s housing market remained relatively stable in July due to higher interest rates and limited available homes.

The latest Market Trends Housing Report from the Colorado Association of Realtors shows the single-family home inventory in the seven-county Denver metro area dropped 3% between June and July and is 28% lower than in July 2022.

Denver continues to keep buyers and sellers guessing as July’s real estate market numbers roll in. Last month marked the seventh straight month where the median price was lower than the month/year before — a trend generally mirrored by metro and state data. What doesn’t mirror it is the parallel drop in demand.

New listings drop

Statewide, active listings dropped by 1% month-over-month but declined 19% from July 2022.

July is just another example of our market being unpredictable. Real estate agents are seeing a trend of fewer sales than the previous year, but July saw a one-year change in sold listings that were up 33% from last year. While active listings fell 8.7%, July bucked the trends.

New listings for all property types dropped 24% in the Denver metro area and more than 21 statewide since July 2022; concurrently, closings were down 17% and 16%, respectively.

Lack of inventory on the market continues to be one of our biggest challenges with sellers holding on tightly to their homes and their rate. With 2.8 months of inventory on the market in Boulder County, the choices are slim, but buyers are taking their time in hopes the rates go down.

Meanwhile, the average days on the market climbed to 26 in metro Denver (up 73% from July 2022) and 37 days statewide (up 43% from July 2022).

Prices continue to drop

Although the median single-family home price dropped for the seventh month in the Denver metro, the median price sits at $625,000.

Statewide, prices dropped for the sixth month, with the median price for a single-family home statewide sitting at $578,250.

The bottom line is that homes are still selling, and inventory is still low as sellers are reluctant to give up their low interest mortgages. Pricing is down slightly due to the interest rate increases and days on market is up by just a few days. All of this combined makes for a more balanced feeling market.

The school year has started, which can often result in less competition among motivated buyers. If that’s you, give Metrowest a shout today and let’s see what’s out there!