The Current State of Denver Real Estate: June 15, 2022

An update since our beginning of the month market assessment is needed:

The Denver housing market and most markets across the country are moving into new territories.  Since April 1st, entry level homes had begun slowing, but the higher end homes still were quite competitive.  Many sellers were still seeing multiple offers coming in and well over asking.  Now, even that market has shifted too.  Sales of luxury homes have plummeted 17.8% year over year throughout the last three months, ending in April.  Unlike most things in life, real estate trickles up; with the less expensive market ($600,000 and below) adjusting first, followed by the higher end homes.  Thanks to interest rates rising, soaring inflation, and a low stock market, even wealthier individuals are starting to feel the pinch and are holding off making large purchases. 

As of Friday, June 10th, rates had topped out closer to 6.0% for conventional loan products.  For jumbo loans, the rates are even higher.  For top end buyers, that can translate into thousands of dollars more per month.

So, we predict that there will be some bumpy times ahead.  Those buyers who needed to find homes are still out there, after months of searching and being rejected.  However, investors and those discretionary buyers are waiting to see what happens before jumping back in.

For the latest metro Denver area statistics, check out the graph below compliments of SMDRA.