Compared to a year ago, nearly twice as many properties are currently on the market in metro Denver, according to a monthly update from the Denver Metro Association of Realtors.
At the end of June, buyers had four times more choices than they did at the beginning of the year – 6,057 vs. 1,477 – after struggling with record-low listings.
However, that may prove to be a small consolation. Home buyers have been priced out of the market by significantly higher mortgage rates and higher home prices, which has resulted in a rise in inventories.
“The stock market, inflation and cryptocurrency have all taken a hit in the last few months. Housing will eventually be a victim to the economy as a whole, but just how much is yet to be seen,” said Andrew Abrams, chairman of the DMAR Market Trends Committee, in comments accompanying the report.
According to Abrams, it is only a matter of time before the surplus inventory affects prices, how long it takes to sell a home, and the lopsided power balance between buyers and sellers.
A listing spends an average of 10 days on the market, about the same as last year. June’s median price for a single-family home sold was $673,873, up 0.58% from May and 12.3% from last year. Condo prices last month were $430,000, flat from May, and up 13.5% from a year ago.
Among metro Denver home sellers, 46.9% reduced their listing prices in May, which is the third-highest ratio in the country, after Provo, Utah, and Tacoma, Washington, according to Redfin. According to DMAR, the number of homes and condos sold in June dropped 12.4% from May and 23.6% from June 2021.