The Current State of Denver Real Estate - September 14, 2023

Well after reaching a peak in June, Denver Metro home prices dipped for the second consecutive month. In August, the median closed price for a home was $582,700, which was 1% lower than what we saw last month and just 1% higher than August, of 2022. Although prices are leveling off, buyers continue to be challenged by affordability as interest rates remain stubbornly high. The number of metro area closings was up slightly from July, but is still 12% lower than last year at this time. Year over year closings, were down in all price ranges with the exception of homes priced at $2 million and above. This range saw a 31% increase in closings compared to last August. One possibility for that increase, is that the wealthy are trying to find alternatives to traditional investing in interest bearing bank accounts or in the stock market.

Inventory levels remained low in August. There was a minor month-to-month increase in the number of new listings brought to the market; however, compared to last year, there was a 7% decrease. Sellers are just questioning the economic soundness of selling their current homes with an interest rate of less than 4% in order to purchase a new home and financing a new mortgage with an interest rate over 7%.

The next two months don’t look to increase in numbers either, based on the number of current listings that have a pending status. The number of listings pending, although up 1% from July to August, were still 14% lower than what we saw last year at this time. So if you are a seller, be patient, price your home right and make sure it is in the best possible condition, if you are looking to go under contract quickly!