Housing Inventory Increased, Sales Declined
The metro Denver real estate market in April showed an increase in active listings by 44% compared to the previous year, with the number of homes up by 33% and the number of condos up by 80%. However, the 6,600 active listings remained well below the historical average of 14,300 for this time of year. If we don’t see an increase in new inventory getting brought to the market, we might see fiercer competition for what few listings we do have available. Under Contract listings decreased by 18% from the previous year, consistent with national trends, indicating a lack of mortgage applications from buyers. Overall sales were down 30% from April 2022, with homes and condos performing similarly to each other.
The average sales price declined by 5.6% in Denver compared to the previous year but remained more stable than in most other western US cities (e.g., Seattle, San Francisco, Los Angeles). The average price for homes and condos in April was $682,000. Properties sold for an average of 0.21% above the asking price, showing a more competitive market than we’ve had so far this year.
(Info Source: The Denver Metro Association of Realtors (DMAR))
INFO FOR SELLERS
Skyrocketing Property Valuations Spark Concerns
The hottest news for homeowners has been that property assessors in metro Denver have reported double-digit increases in property valuations, impacting homeowners’ property taxes. Median residential increases ranged from 33% in Denver to 47% in Douglas County. Property owners are encouraged to review their assessments and file an appeal if necessary. The new property taxes are significantly higher for most homes, which unfortunately will hurt the ability of some buyers to qualify for their monthly payments. Lawmakers are discussing reducing the increase of property taxes. We’ll see if they can agree, and if so, how fast it will take for any relief to be issued.
(Info Source: The Denver Business Journal)
INFO FOR BUYERS
Affordability Remains an Issue – Consider Adjusting Expectations
Although Colorado ranks fourth on Moneywise’s list of challenging states for first-time homebuyers due to high prices and limited inventory, there are some enticing options for savvy buyers out there. Consider exploring new construction homes, as builders often include incentives for mortgage buy downs, making them attractive financial choices. As a point of reference, in December 2022 newly built homes represented 35% of all homes sold in the U.S. Also, consider condos/townhomes, as they are now significantly cheaper on average than detached single-family homes. Even if your next home is not your dream home or forever home, you can still build equity over the life of your loan and could eventually consider trading up or refinancing for lower monthly payments if possible. Try to take advantage of these opportunities as a stepping stone to fulfill your homeownership aspirations while building your own equity (as opposed to your landlord’s) and secure a brighter future for yourself in the process!
(Info Source: The Denver Metro Association of Realtors (DMAR), The Wall Street Journal)
*We use reasonable efforts to include accurate and up-to-date information. The real estate market changes often. We make no guarantees of future real estate performance and assume no liability for any errors of omission in the content.