New listings bring better balance to Denver's housing market
Yes, but: Buyers aren't budging. The housing market in Denver, Colorado, is finding its equilibrium as more homes are being added to the market, but many buyers are not buying due to high prices and interest rates. Despite a 35% increase in new listings in metro Denver in May, new listings increased by nearly 35% year over year, while new listings statewide rose 24% over the same period. Despite this increase in inventory, housing prices have not decreased. The slow spring selling season is causing concern among local realtors, who predicted a boost in inventory a year ago would bring buyers back. The median price for single-family homes is up 1% in the metro and 4% statewide compared to a year earlier, but prices for condos and townhomes are dropping, with a dip of 3.5% and about 2% statewide. For the first time in nearly 12 years, there is now over three months of inventory in Denver County, with over 1,700 new listings and only 1,013 sales closed. Industry experts predict that if inflation rates continue to slow, entry-level housing can become more attainable.
Publié : il y a 11 mois par Alayna Alvarez dans Finance
A "For Sale" sign stands in the yard of a single family home in Denver. Photo: Matthew Staver/Bloomberg via Getty Images
Metro Denver's housing scene is finding its equilibrium as more homes hit the market, but many buyers aren't budging amid stubbornly high prices and interest rates. Why it matters: The slow spring selling season is stumping local realtors, who predicted a year ago that a boost in inventory would bring buyers back.
What they're saying: "We are not seeing that play out and once again, the truth is the cost of housing is too high — at least in the median price points," Colorado Springs realtor Patrick Muldoon said Wednesday in a statement.
• The "uncertainty of the upcoming election" isn't helping, and "many buyers seem to be waiting this one out," added Boulder-area realtor Kelly Moye.
By the numbers: May's new listings of metro Denver homes jumped nearly 35% year over year, while new listings statewide rose 24% over the same period, according to a new report from the Colorado Association of Realtors.
• Despite the uptick in inventory, housing prices haven't dropped. Compared to a year ago, the median price for single-family homes is up 1% in the metro and 4% statewide.
• Yes, but: Prices for condos and townhomes are dropping, with a dip of 3.5% in the metro area and about 2% statewide.
Zoom in: Denver County's median close price for single-family homes was $625,000 last month, an 18% increase from the end of last year.
Stunning stat: For the first time in nearly 12 years, there was more than three months of inventory in Denver County, with over 1,700 new listings and only 1,013 sales closed. Over the last decade, Denver's inventory hovered around two months.
• "The current level of inventory is a strong indication that we are experiencing a balanced market for the first time in over a decade," Denver County-area realtor Cooper Thayer said in a statement.
The big picture: Since 2018, Colorado homeowners have faced a 57% rise in insurance premiums, worsening affordability issues for entry-level buyers, industry experts say.
• Recent property tax increases, high prices, soaring HOA dues, rising insurance costs, and inflation have further reduced activity in the lower price ranges.
What to watch: Hope for new homebuyers could be around the corner. "If all goes well, inflation rates will continue to decelerate, and entry-level housing can become more attainable," Thayer said.
Les sujets: Real Estate, Markets