The Denver Real Estate Market in March 2022
Buyers caught a break in March with 6,020 new listings (attached and detached) coming on the market. Compared to February, that's a 43.6% increase—it's also 5.5% higher than a year ago.
Potentially fueling this rush are rising interest rates. Many homeowners are looking to sell before potential buyers are priced out. And many buyers are just as eager to purchase a home before rates climb any higher.
The end result? A total of 4,440 homes closed last month and by month's end, there were just 2,221 active listings. The average number of active listings for the month of March is 13,917 based on data from 1985-2021.
As for prices, detached single-family homes reached an average price of $797,700. That's a month-over-month increase of 8% and 18.1% higher than a year ago. Buyers are coming in with their strongest and best offers, and homes are going for 106.7% of their listing price.
As for condos and other attached properties, prices jumped from $460,148 in February to $495,937 in March.
With interest rates in flux and overall inventory numbers still lagging behind demand, the Denver real estate market continues to move at a rapid pace. Days on market for detached homes are down 31.2% year-over-year and now stand at 11.
Attached homes are selling 52% faster than the year prior, spending just 12 days on the market. That's also 4 days faster than February.
One opportunity for buyers is to look at homes that get through their first week (and beyond) without going under contract. In March, 6.4% of closed transactions reduced the asking price before receiving an offer. And reduced properties spent an average of 55.4 days on the market.
While some of these homes might be distressed or not located in the most popular neighborhoods, others are fantastic listings that simply came out of the gate with an overly aggressive asking price.
As our agents know, there's a small window of time to grab a buyer's interest before they move on to something new. If you're a buyer, a listing that lingers could be just the bargain you're looking for.
What's next for incoming inventory and mortgage rates remains to be seen. However, even if the number of new listings continues to increase into the typical busy season, it will still take quite a bit of time for the market to meet pent-up demand and start balancing out.
Your best bet is to talk with a PorchLight agent who can advise you on when to make your move and when to circle back on potential gems. They can also connect you with reputable lenders who can get you the lowest possible rates.
To view our report on Denver real estate market stats for March, click here.
Mortgage Payment Schedule
Interest and mortgage rates change daily. The rate you get will also depend on other factors like your credit score. So, we've put together this handy chart to give you a better idea of your base mortgage payment (principal and interest) depending on your loan amount.
For example, you buy a home for $500,000 and put down 20% or $100,000. You then secure a 30-year loan for the balance of $400,000.
At 4% interest, your base monthly mortgage payment will be $1,910. If rates go up just one percentage point, you'll pay $2,147. That's an extra $237 a month which can be significant for some buyers—especially once you add in homeowner's insurance and property taxes.
Take a look at the chart below for more numbers, you can also download a PDF to keep handy.