DMAR Real Estate Market Trends Report | JUN. '23
While new listings rose 8.87 percent month-over-month to 5,180, the market is still down 23.94 percent from last year when it had 6,810 new listings. For perspective, throughout the previous 10 years, inventory this time of year tends to be in the mid-7,000s, with the height in May of 2019 of 8,796.
Month-over-month closed sales were up 6.71 percent to 4,167, the median sales price rose to $595,000 from $580,000 and days in MLS went to six median days as opposed to four days last year. Active listings at month-end rose 13.16 percent month-over-month and 43.15 year-over-year to 5,228, showcasing a slower absorption of listings on the market.
The report also shows that real estate continues to be notably neighborhood specific, especially for single-family homes. Two similar homes in different areas of town mayare showing to perform substantially differently, where one will receive multiple offers selling to the highest bidder and the other may linger on the market with multiple price reductions.
“Spring felt like a failure to launch, which has led to a summer kick-off where the natural rhythm of the Denver real estate market simply feels off,” commented Libby Levinson-Katz, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “Due to the lack of inventory, buyers are experiencing a bit of fatigue as they wait for either the perfect home or to uncover a good deal. When finding the right house, buyers are moving a bit more slowly. Conversely, sellers are more realistic and strategize more with price reductions. While many lenders still predict that interest rates will go down at the end of the year, we can only hope that we have an extended spring/summer season come fall.”
Our monthly report also includes statistics and analyses in its supplemental markets that include properties sold for $1 million or greater, properties sold between $750,000 and $999,999, and properties sold between $500,000 and $749,999.
This May, the market for properties $1 million or greater continued to see a giant slowdown when comparing 2023’s year-to-date numbers to the same time last year. The number of closed homes was down 30.13 percent, pending sales were down 16.83 percent, total sales volume was down 28.32 percent, price-per-square-foot was down 2.53 percent and the median days in MLS was up an astonishing 125 percent.
“Considering the economic turmoil experienced since May of 2022 with record-breaking interest rate increases, bank failures, high inflation, the crash of the crypto market and debt ceiling drama, this slowdown is understandable,” said Colleen Covell, DMAR Market Trends Committee member and Metro Denver Realtor®. “In uncertain economic times, it’s natural for people to pump the breaks on spending, pause and wait for the economy to steady itself, but the month-to-month comparison suggests that perhaps $1+ million buyers and sellers are starting to dip their toes back into the market.”
The $1 million and greater market saw the largest increase in inventory of any segment with 785 new listings hitting in May, up 19.3 percent from April. Also up from April were pending sales at 6.93 percent, closed sales at 12.84 percent and sales volume at 13.22 percent. Homes went under contract faster too, with median days in MLS dropping 44.44 percent from April. Home values appreciated month-over-month in both detached homes, up 1.66 percent, and attached homes, up 2.39 percent, and with those encouraging numbers it suggests the slowdown may be easing as the economy starts to steady.
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