The Denver Real Estate Market in June 2023
Summer officially started in June and along with it, Denver's real estate market slowed. Kids are out of school and summer adventures are now underway. A reduction in buying and selling activity is normal though a bit exaggerated this year due to the ever-present higher interest rates.
While overall inventory remains low and there's still competition in the most desirable neighborhoods and for the most attractive homes, the number of active listings is up 16.1% month-over-month. That's both attached and detached properties still available for sale at the close of June.
Taking a closer look, the median price for detached, single-family homes came in at $655,000 in June—the same as it was in May. Compared to the same time period in 2022, that's also a drop of 2.2%. That's a lot of good news for buyers still out on the hunt this summer.
As for home inventory, 4,045 new detached listings came on the Denver real estate market in June. While that's a 10.2% increase over May, it's also 28.7% lower compared to June of 2022. According to Steve Danyliw, Past Chair of the DMAR Market Trends Committee, the reason behind this is clear:
"The primary factor driving this trend is the disparity between sellers' existing mortgage rates and the prevailing market rates. The difference in monthly payments holds significant importance when defining what's affordable and thus is prompting some homeowners to wait for lower rates."
Looking at sales, 3,096 single-family homes went under contract last month and just 2,956 properties closed. Compared to 2022, that's a 22.7% reduction.
So, how fast are homes selling? Average days on the market increased just slightly to 23 versus 22 in May. Median days on the market, that number right in the middle, came in at 7 days, also a one-day increase. Last year, the median was just five.
This disparity in average versus median goes to show that there are homes sitting on the market for quite some time. And these aren't necessarily distressed properties or homes in the least desirable neighborhoods. That's why it's important for buyers to work with a real estate advisor who can help them uncover these gems that will have much more motivated sellers. There are bargains if your agent knows where to look.
As for Denver's attached real estate market, condos and townhomes, new listings came in at 1,583 properties and 1,289 listings went pending, both pretty flat compared to May. The median price in this sector also decreased by 1.2% month-over-month, coming in at $420,000. In June of 2022, the median price was $430,000, so again, this year's buyers are seeing higher interest rates somewhat offset by lower prices.
As the real estate market continues to slow for the summer, it's important to have a knowledgeable and experienced expert by your side. Whether you're buying or selling a home, a dedicated advocate can make all the difference when it comes to achieving your real estate goals.
Understanding the Home Selling Process
As the market cools amidst the heat of summer, selling a home takes more nuance and a rock-solid strategy. If a sale is in your future, a good place to start is to have a better understanding of the process and what to expect along the way.
Choose a Real Estate Agent – The right agent will provide pricing and marketing strategies to sell quickly and for top dollar. Be sure to ask your agent for a Comparative Market Analysis which will help determine an accurate asking price. This figure is based on local market conditions and comparable sales based on the size and condition of your home.
Prep Your Home for Market – No matter what services are needed, your agent should have everything covered. At PorchLight, we offer:
- Staging: Showing a home’s full potential via staging can help it sell 2x faster and for up to 10% more.
- Cleaning: Our expert team will shine all rooms and surfaces to get your home ready for listing photos.
- Floorplans: A licensed pro verifies specs and square footage for better comps and accurate pricing.
- Photography: We take compelling photos that grab attention and drive buyers to your open house.
- Marketing: Our in-house agency creates print and digital materials plus signage to promote your home.
Show Your Home – Open houses and private showings are scheduled to get tons of potential buyers through your door. PorchLight’s unique, collaborative open house program maximizes buyer traffic and ensures a friendly, knowledgeable agent will host potential buyers at your home.
Accept an Offer and Come Under Contract – Your agent will help you select the best and strongest offer (it's not always about price), ensuring you get the best deal. Once both sides agree and sign a contract, the home will be held in escrow until closing.
Due Diligence – This is more of a waiting game for you as the seller. However, your buyer will be busy setting up an inspection and appraisal, as well as securing their home financing. If there’s an issue along the way, your agent will advocate for you and negotiate on your behalf.
Close and Get Paid – Once the buyer is cleared to close, funds are transferred, paperwork is signed, and you get paid!