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Metro Denver for-sale homes inventory up, buyers cautious

By Jessica Gibbs July 7, 2023 | updated 2 years ago

Home buyers appear to be waiting to jump into the Denver housing market amid high interest rates, according to the latest Denver Metro Association of Realtors monthly Market Trends report, which also noted growing inventory combined with slower market activity. Home sales were significantly lower this June as compared to 2022.

Market-wide, there have been 23.26% fewer properties for sale so far in 2023 than this time last year. That decrease was a little less among properties with a listing price of more than $1 million, which saw an 8.7% decrease.

There were 5,628 news listings in June, a 27% decrease from June 2022, when there were 7,733. The number of year-over-year sales fell nearly 25%, with 4,109 this June compared to 5,472 that time last year.

In June 2023, the median sales price for residential properties was $600,000, while the average was $713,647, up 1.2% and 2.6% respectively from May. 

The median close price for a single-family home was $655,000 in June, compared to $670,000 in June of last year. For condos and townhomes, the median close price was $420,000 this June, and $430,000 in June 2022.

Home priced over $1 million stayed competitive in June, with 326 sales closing. There remains an “ample supply” of single-family homes priced between $1 million and $1.5 million, according the report. Properties above $1.5 million saw 188 closings. Homes at that price range are more limited in supply.

The amount of active listings at the end of the month have, for the most part, steadily increased month-over-month in 2023. They stood at 6,070 in June. That’s a 16.1% increase from May and the highest since 2020.

The bump is likely due to an increase in the number of deals failing at inspections.

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“Buyers are far more discerning and they want to negotiate and feel as though they are getting a win in a landscape with rates hovering around seven percent and construction costs soaring,” said Libby Levinson-Katz, Chair of the DMAR Market Trends Committee and Metro Denver Realtor, in a news release.

Buyers aren’t looking the other way, though, Levinson-Katz said. Open houses are seeing more activity and buyers are keeping an eye on the market, “waiting on the sidelines” in the rental market hoping for rates to drop.

“The important key here is that there are many would-be buyers out there who will be ready to jump in once rates start to decline,” Levinson-Kats said.

The days of “routinely putting a home on the market and watching it sell to the highest bidder in days are over,” according to the report.  Bidding wars eased in June, with homes selling close to list price — the close-to-list-price ratio stood at 100.2%.

Properties stayed on the market for an average of 23 days last month, which was a 109% year-over-year increase.

“One of the most interesting observations about the real estate market is how interest rates have decreased the incentive to move,” said Andrew Abrams, DMAR Market Trends Committee member and Metro Denver Realtor.

The Market Trends report covers the 11-county metro Denver area, including Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park. 

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Jessica Gibbs

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