According to the latest market trends report from the Colorado Association of Realtors, new home listings statewide increased nearly 24% in May compared to May 2023, creating a more balanced housing market.

Over the past decade, Denver has averaged around 1.5 to 2 months of inventory, which makes it a moderate seller’s market.

In 2022, Denver experienced an extreme seller’s market with only two weeks of inventory.

However, last month, for the first time since November 2012, there was 3.3 months of inventory in Denver, as over 1,700 new listings hit the market and only 1,013 sales closed.

Experts see the current level of inventory as a strong indication that we are experiencing a balanced market for the first time in over a decade.

Buyers and sellers are better matched in negotiating power, and sellers are providing concessions in transactions to assist with interest rate buydowns for buyers. Buyers, however, have generally compensated for this with higher offers.

The spring selling season has been slow in most markets statewide as buyers wait for interest rates to drop. The lackluster spring market makes realtors wonder if the market will continue to struggle.

Despite the slower-than-expected sales, the median prices for single-family properties continue to increase. Statewide, the median home price increased 4% last month over May 2023.

Rising home prices, high interest rates, and increasing property taxes and insurance premiums are pricing more potential buyers out of the market. But insiders agree that if inflation rates will continue to decelerate, entry-level housing can become more attainable for new homebuyers.

Are you ready to see what the Denver area has to offer this summer? Reach out to one of the experienced professionals at Metrowest today and let’s discuss your options!