DENVER – The median price for a single-family home in the Denver metro area and across Colorado fell for a fourth straight month signaling a return to a “somewhat normal” market, according to the Colorado Association of Realtors.
The association’s August 2022 Market Trends Housing Report noted the drop in prices isn’t just due to rising interest rates and inflation, but also due to traditional seasonal slowdown that happens as families settle down from a busy travel season and kids go back to school.
The report shows single-family homes in August were selling at a median price of $620,000 – up nearly 10% from last year but down $40,000 from its April 2022 record high. Condos also saw prices drops from July to August with a median price of $405,000, up 8% from last year but down $38,000 from its April high.
“We are returning back to somewhat normal, a somewhat amount of normalcy that we’ve really not experienced over the last two years,” said Colorado Association of Realtors spokesperson Matt Leprino in an interview with Denver7 this week.
Across the state, median home prices were at $570,000, up 9.6% from a year prior but down $30,000 from their record high four months later. Because of its lower price point, condos statewide saw an uptick month-to-month and were going for a median price of $414,961, down more than $20,000 from its April high.
For the first time since before the pandemic began, the percent of list price dipped below 100% across the state for single-family homes. Condos haven’t seen that drop since mid-to-late 2020, according to the CAR.
The association was cautious in saying trends had shifted, however, noting that while buyers have a few more options and more time to look at homes before they’re under contract, Colorado still remains a seller’s market, as the month’s supply of inventory remains “well below the 4-6 month range considered to be a balanced market,” according to the report.
Housing affordability remains the most pressing issue for potential homebuyers and the CAR Housing Affordability Index – a measure of how affordable a region’s housing is to its consumers based on interest rates, median sales price and median income by county – continues to hover around its all-time lows for all property types statewide, the report states.
As for those looking to sell their homes in this market? Leprino told Denver7 those looking to have their homes be the most attractive property on the market need to be the best priced.
Earlier this month, Andrew Abrams, chairman of the Denver Metro Association of Realtors Market Trends Committee told Denver7 sellers should base the price of their homes on the last 60 days of home prices, not the last 6 months.
“Pricing strategy has proved to become one of the most important factors in the cooling market. Real estate agents typically rely on trailing six-month comparable sales figures to determine list prices, which are heavily skewed upwards due to the spring boom. The result is, eager sellers hoping to get top-dollar for their homes but resorting to price reductions after spending longer than anticipated on the market,” said Douglas County-area REALTOR® Cooper Thayer.
Those looking to buy should be looking at homes in Aurora, Centennial, Adams County and Arapahoe County as inventory was up about 40%, according to realtors who shared some highlights in their respective markets.
In other markets, like Summit County, single-family home inventory is up 93% - also reflective of the cooling effect on the market taking place statewide.
“If you're looking for a mountain home, you probably want to be looking in the warmer months. It's just easier to get around. It's easier to look at property,” said Leprino. “And in those cooler months is when the season or, or really the, the hot time to look at the property, dies down just a little bit.” The same advice goes for those looking for a home in the city.
“The seasonality really slows down around back to school. You want to make sure that you were in the school district you want to be,” Leprino said. “And so it's very similar for second or vacation homes.”