The Denver Real Estate Market in July 2022
Denver's real estate market continues to offer a greater balance between buyers and sellers. Month-over-month, the average price for all residential properties dropped by 3.3%. Also, on average, homes are closing for just over asking at 100.8% as bidding wars are now few and far between. Still, prices are up 11% compared to last year which is a healthy home equity gain for those who purchased even when the market was moving at a much more rapid pace.
Looking at detached single-family homes, 4,555 new listings came on the market in July, a month-over-month decrease of 19.7% and 11% lower than 2021. The average price came in at $781,631 which is a decrease of 3.14% compared to June (and 12% higher than last year).
We're also seeing another rise in days on the market, now up to 13. And there's more inventory available at the end of the month, up a whopping 96.3% year-over-year at 5,650. However, if new inventory continues to wane, this number will likely come down with it and prices may even increase at some point.
As for attached homes, they came in at an average price of $475,811 compared to $504,193 the prior month yet 7.9% more compared to 2021. These properties are also averaging 13 days on the market and closed for 101% of their asking price. In June, the average was 103.3% over asking.
During the housing crisis of 2008, new listings flooded the market month after month, causing prices to plummet. We are simply not seeing that in Denver's real estate market right now.
“The question that frequently gets asked is whether we are in a bubble. Prices are high, interest rates feel high and even though compared to historic norms are not, the economy has taken a dip and buyer sentiment is down. With all those uncertainties looming over potential buyers, a housing bubble should not be one of them because housing prices are based on supply and demand. Our supply is relatively low. People who currently own are not incentivized to move as their interest rate is most likely lower in their current house than it would be in a future one. While prices may go down and days in the MLS may go up, we are still far away from a bubble.” –Andrew Abrams, Chair of the DMAR Market Trends Committee
So, what's happening right now? The market is shifting from one where buyers can work with any agent who will help them "win" the transaction to one where knowledgeable and skilled professionals are the best asset a buyer or seller can have. As everyone realigns their expectations, it's crucial to have a well-connected, highly analytical agent who can best guide you in making smart decisions.
To view our report on Denver real estate market stats for July, click here.
On-Market Tips for Successful Home Showings
While your house is on the market, it needs to make the right impression during broker previews and buyer showings. To keep it ready at all times, here’s a simple list of items that help to create an inviting and attractive space
- Make it bright. More light always makes a space feel bigger! Use high-wattage bulbs in light fixtures and turn on all of your lights and lamps—even if it’s daytime. Open drapes, blinds and shades. And make sure the windows are clean to let in as much natural light as possible.
- Stash your stuff. Maximize the feel of your space by clearing out clutter. Pare down clothes in closets, stow your kitchen appliances out of sight and fully clear kitchen and bathroom counters. Then use bins to stash pet toys, kid stuff and other everyday items out of sight.
- Keep things clean. Cleanliness is vital to presenting your home well. Clear cluttered counters and surfaces. Clean cobwebs, as well as dust from ceiling fans, mantels and built-ins. Take out the trash, wipe down bathrooms and kitchens, close toilet lids and sweep the floors.
- Wrangle your pets. Put away toys, vacuum pet hair out of carpets and upholstery, clean the cat box and pick up any waste in the yard. Then secure your pets or take them for a ride in the car during a showing. It’s more appealing for buyers and less stressful for your pets.
- Tidy the outdoors. The walk up from the street is the first impression a potential buyer will have of your home, so the exterior is just as important as the interior! Make it count by mowing the grass, putting away toys, raking the leaves, straightening up furniture and keeping walkways clear.
- Make it welcoming. Fluffed pillows, made beds and a fresh smell make your home more appealing. Remove pet and cooking odors with open windows or air purifiers. Add a natural scent such as fresh flowers or freshly brewed coffee and play soft background music for added ambiance.
- Set the temp. Being too warm or too cold can cause a potential buyer to rush through your home without really seeing it. While you may prefer it warmer or cooler, setting the thermostat to a comfy 70-72° will encourage buyers to take their time while touring your space.
- Make your exit. You want prospective buyers to see your house as their new home, so go for a drive or take the dog for a walk. Buyers will be more comfortable exploring if you’re not around. Just be sure to open doors between rooms and make sure things are tidy on your way out.