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Real Estate Market in Denver for November 2022

Real Estate Market in Denver for November 2022

High Interest Rates Cause Market to Slowdown

There is no denying the market in Colorado has slowed down drastically from the height of the pandemic. The slowing housing market can be accredited to high interest rates. When interest rates climb, so does the softening of prices, demand and sales — it’s all one big cycle.

Homeownership is a Great Opportunity for Wealth Creation

According to Nicole Rueth with OneTrust Home Loans, “In Denver Metro, our home price index is up 151% in appreciation from 2012, and homeowner equity is sitting at $41.2M with mortgage debt around $12.2M…We have an incredible equity cushion that is helping shield us from any ‘crash.’ Yes, we’re bouncing around and going through all the things, but homeownership is still the path to wealth and stability.”

Homes Taking Longer to Sell + Demand Has Slowed Dramatically

Denver Metro Association of Realtors (DMAR) reported the following stats for Denver Metro’s 11 Counties in November:

  • The average home is taking 34 days to sell
  • Only 2,824 homes went under contract
  • Homes appreciated year-over-year by +4.66 percent on average
  • Month-over-month, prices are down -0.20 percent.
  • The average home sale price in Denver Metro was $657,610
  • We’re seeing a seasonal slowdown in inventory with only 2,678 new homes coming to market
  • We ended the month with 6,253 homes for sale, up 178.16 percent from November of 2021

 

 

What this Means for Home Sellers

  1. Due to the current market conditions, fewer buyers are actively purchasing properties.
  2. Expect to have more competition with the number of active listings up 178.16% from this same time last year.
  3. At Usaj Realty, we believe that working with a qualified and value-driven real estate agent is more important now than ever before. Our agents are ready to help you get the most money for your home.

What this Means for Home Buyers

  1. You have the upper hand! With higher levels of inventory, the holiday season in full swing, and with plenty of price reductions, you can negotiate for a great deal.
  2. It is crucial that you find a dependable local lender in today’s climate as they may have access to some interesting lending opportunities. Usaj Realty can assist you with some recommendations

Overall Picture

Although the Denver housing market has calmed down since the hectic pace during the pandemic, real estate continues to be a fantastic way to build long-term wealth. Right now is an opportune time to buy while buyers have more negotiating power before prices start rising again. If you’re able to hold onto the property for several years, you’ll be in an incredible position!

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Housing Market Stats Charts (2)

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Housing Market Stats Charts (5)

Key Quotes from the Denver Metro Association of Realtors:

  • “While inventory increased from last year, the market is still witnessing the typical end-of-the-year inventory decrease, which is likely a result of homeowners choosing to either wait to list their homes until the New Year or remove their properties ahead of the holiday season.”
  • “As the active listings count has grown, days in the MLS have has also increased since May in direct relation to interest rates. Interest rates affect a buyer’s ability to afford a home, and as a result, buyers are taking more time to evaluate the value of each home, indicating that buyers are more discerning.”

November Numbers Over the Years:

Avg. Days on Market Avg. Sold Price: Single Family Home Avg. Sold Price: Condo # of New Listings # of Homes Sold # of Homes Pending Avg. Sold Price Change YOY 
Nov. 2017 40 $479,192 $324,599 3,654 4,231 4,321 + 8.31 %
Nov. 2018 31 $505,990 $358,447 3,909 3,732 3,964 + 6.47 %
Nov. 2019 35 $537,624 $365,856 3,651 3,935 4,417 + 6.76 %
Nov. 2020 22 $615,766 $391,390 3,689 4,820 4,796 + 13.12 %
Nov. 2021 15 $703,847 $445,366 3,741 5,344 4,680 + 15.49%
Nov 2022 34 $732,437 $472,126 2,678 2,877 2,824 + 4.66

Source: DMAR

 

Average Interest Rates by Year in Denver

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 2022 (thru Q3)
Average Interest Rate 5% 4.7% 4.% 3.6% 4% 4.2% 3.8% 3.7% 4% 4.6% 3.9% 3.1% 2.96% 4.87%
Data courtesy of Megan Aller | First American Title

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Read Next: Home Buying: What to Expect When Working with Usaj Realty

Housing Market Stats Charts (1)

Read Denver Metro Association of Realtors’ full report on last month’s Real Estate trends and statistics in Denver here.

And as always, please let us know if you have any questions!

Whether buying or selling, Usaj Realty is dedicated to helping you stay competitive. Your Usaj Realty broker will communicate effectively, learn your goals like the back of their hand, work closely with you to negotiate the best terms possible, and expertly manage your transaction from start to finish, ensuring peace of mind.

Email us at info@usajrealty.com or call 720.398.2999

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