not so hot july: low inventory, interest rates keep colorado housing market calm
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By Sara B. Hansen | Published on August 18, 2023
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 perplex and bewilder 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,” said Matthew Leprino with Remingo.
New listings drop
Statewide, active listings dropped by 1% month-over-month but declined 19% from July 2022.
“July is another example of our market being unpredictable. We were on 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,” said Dana Cottrell with Summit Resort Group Real Estate.
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.
“The lack of houses 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,” said Kelly Moye with Compass-Boulder.
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).“This is one of the strangest markets I have seen in a long time, maybe ever,” said Patrick Muldoon, a Colorado Springs-area realtor.
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.
“Bottom line, 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. In general, the market feels a little more balanced,” said Sunny Banka, an Aurora-area realtor.