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'There's opportunity': Denver housing prices dropped last month

Home prices in Denver drop 0.24%
Posted at 4:27 PM, Jun 06, 2022
and last updated 2022-06-06 20:45:36-04

DENVER — For what feels like the first time in a long time, the housing market is shifting, and this time in the direction of the buyer.

“This is probably one of the better times to be a buyer than we've seen for the last couple of years,” said Bret Weinstein, CEO of Guide Real Estate.

Weinstein says housing prices are beginning to slow back down.

“If I had to make a projection right now, I think that buyers are probably going to be in a little bit of a better position as the rest of this year goes on," Weinstein said. "I don't think that we're heading off some magical cliff where prices are going to decrease."

A report by the Denver Metro Association of Realtors (DMAR) shows the median closing price for a home fell at the end of May compared to April.

Andrew Abrams, chair of the market trends committee for the DMAR, says the drop wasn’t drastic, only about a one quarter percent.

“Last month, we went down 0.24%, which is almost the same as zero. But just the headline of negative is going to have a certain connotation about it, but realistically, I bet we end the year with double digit appreciation,” said Abrams.

Abrams says while the dip in prices is small, it could mean that rising inflation, interest rates, and a drop in demand are settling in.

“We are seeing an increase in days in the [Multiple Listing Service], and I think that's going to be common because as the amount of buyers start to shrink and the seasonality of the market and inventory increases, there's going to be people that haven't adjusted,” said Abrams.

Abrams says some of the best advise they can give buyers is patience.

“Call your lender or call your real estate agent daily to figure out where rates are, figure out where inventory is," Abrams said. "There's opportunity, and it's probably the best opportunity that we've had in the last 10 years."