We'd like to share an update on the current state of the overall metro housing market. Recently, we've noticed a slowdown, typical for late summer, compounded by higher mortgage rates, leading to a 20% dip in August home sales. The average rate on 30-year loans is now at around 7.7% and doesn't look to be dropping any time soon.
Despite this shift, one thing remains constant—strong home prices across the metro.
In September, both home and condo closings fell nearly 21% compared to August and were down 28.2% from last year. Some of this is seasonal, but it's notable that last year saw an 8.4% monthly drop, and the year before that, a 12.2% decline. The number of listings in September rose by 11.2% from August to 7,629, but it's still only half the September average. Surprisingly, supply increased despite fewer new listings, down 5.9% to 4,589 last month and 12.6% from last year.
The median price for a single-family home in September was $640,000, down 1.5% from August but up 1.6% from the previous year. Condos and townhomes median price was $420,000 in September, up 0.48% from August and 2.4% over the past 12 months.
Buyers are seeking concessions rather than lower prices, which include interest rate buydowns, leading to successful negotiations. Buyers are not interested in fixer-uppers right now.
Homes and condos spend an average of 30 days on the market before finding a buyer, up from 26 days last month. While supply is rising, and demand is lower, significant price drops have yet to occur. Denver's real estate market is still largely a seller's market. High-end homes ($2 million or more) are approaching balance, with six months of inventory for single-family homes and seven months for condos and townhomes.
The real estate market can change quickly, and local conditions may differ. If you have questions or need more local housing market information, feel free to reach out. We're here to help you navigate the current market conditions and make informed decisions.