The Denver Real Estate Market in October 2022
If you've been waiting on the sidelines, now is the time to buy. Average prices for both attached and detached homes have decreased. The number of days a listing sits on the market has increased. However, new inventory has dropped as the market reaches its winter/holiday slowdown.
While this gives you time to find a good deal on a home right now, continuing to wait could mean even less inventory available—a scenario that often leads to higher prices and more competition. In addition, experts predict that mortgage rates will start easing in 2023. So, once February or March arrives, there will likely be a surge of activity.
Let's take a closer look. The median price for detached, single-family homes decreased month-over-month from $630,000 the prior month to $622,490 in October. Median prices for attached listings, such as condos and townhomes, decreased from $410,000 in September to $405,000 last month.
Still, the last two years of low interest rates and high demand have given sellers a lot of equity in their homes. Detached homes prices are up 6.5% over the same time period last year. And attached dwellings are up 8% year-over-year. Meanwhile, historical national appreciation values average around 3.5 to 3.8 percent per year. While double-digit gains are gone, homeowners are still seeing significant returns on investment.
Here's a quick summary of what's been going on in the Denver real estate market.
“This evolving marketplace allows buyers more options and the gift of time to decide on a home while negotiating terms that suit their needs. Meanwhile, sellers can analyze the marketplace to position their homes correctly while being able to experience a great return on investment due to rising prices over the last years. While the market changes, the past two years continue to represent the exception and not the rule. If one was to remove 2020 and 2021, the Denver Metro market trajectory is on pace with where it was predicted to be had COVID-19 not happened.” —Libby Levinson-Katz, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®
As for the inventory of properties for sale, 2,720 new detached, single-family listings came on the market in October, a significant decrease compared to 3,772 in September. And 5,444 homes remained on the market at the close of the month, a year-over-year increase of 132%. If this drop in inventory continues (which would be typical for this time of year), active inventory will likely decrease and push prices higher.
Days on the market also jumped from 26 to 28 across all properties for sale, giving buyers more time to shop for homes that fit their needs and budgets. It also indicates a need to price a listing conservatively if you want to attract an offer quickly. Looking at recent closings rather than historical data to determine a listing price is critical.
As for the attached market, such as condos and townhomes, data shows that in September, 1,117 new properties came on the market, a month-over-month decrease of 23.8%, and the month ended with 1,846 listings still on the market. The median price here went down compared to September, coming in at $405,000 last month. Compared to 2021, prices are also up by 8%.
While interest rates have created a lot of uncertainty, keep in mind that just six months ago, many buyers could not win bidding wars, desirable homes were going for 25% or more over the asking price, inspections were being waived, and appraisal gaps were being covered with buyer cash. Rising rates are actually creating a more stable and sustainable market for both sides of the table.
Take a Field Trip with Your PorchLight Agent
If you're ready to take advantage of homes staying on the market longer and prices easing, reach out to one of our friendly agents and ask them about a Market Education Day. This unique service allows you to explore different neighborhoods and look at an array of architectural styles to help you find the right home for your lifestyle and budget.
Learn from a Neighborhood Expert
Through PorchLight’s one-of-a-kind certification program, agents learned about each neighborhood’s unique characteristics, which enables them to educate and help you make the best investment decision when buying a home. With their market expertise, your agent can provide you with insight into the neighborhoods you love and similar areas where your budget will stretch a little further and give you the most home for your dollar.
Find Your Perfect Fit
From the neighborhood to the type of house, to the floor plan, they will show you a variety of homes. In the end, you’ll know that you made a fully educated decision, no regrets! Because they take the time to learn exactly what you’re looking for, they can even preview potential homes on your behalf—sometimes before they’re on the market. This gives you a true expert on your team and the ultimate partner in finding your new home!
