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Denver Real Estate Market Report for July 2022

Denver Real Estate Market Report for July 2022

Homes More Likely to Sell at Asking Price

According to DMAR, the close-price-to-list-price ratio was down to 100.81 percent, a clear indication that the market has shifted and most buyers are no longer paying over asking price for homes in July 2022.

July saw an increase in active inventory by a whopping 81.48% when compared to July 2021. Denver metro only had 4,056 homes for sale at the end of July 2021 and at the end of July 2022 we had 7,361.

Homes Taking Longer to Sell

For the first time since February of 2020, days on market went up year-ove- year. In July 2021, homes were taking an average of 9 days to sell and this year that number ticked up to 13.

The number of under-contract homes as well as sold homes were both down when compared to last month. Only 4,438 went under contract in July 2022 compared to 6,061 last year and 1,541 fewer homes sold.

Home appreciation is also slowing down from its rigorous pace a year ago. Last month, home appreciation values were 11.04 percent compared to16.4 percent in July of last year.

Inflation Taking its Toll

The overall landscape of the housing market has changed. Higher mortgage rates, inflation, market volatility and rising concerns of a recession all played their part in the change. June’s inflation report shows 9.1% inflation, the highest in 40 years. In an attempt to combat inflation, the Fed has raised rates by 200 basis points since May.

So what’s the good news? Owning real estate is not only a great hedge against inflation, but in contrast to renting, it allows you to actually budget for a steady monthly payment. With more active inventory, the insanity of the market has calmed down to a much more manageable pace.

July 2022 market report (3)

Top Tips for Denver metro home buyers:

  • For the first time since before the COVID pandemic, days on market went up, allowing home buyers to navigate their buying journey at a more relaxed pace.
  • Showings are no longer impossible to book and most homes are selling at asking price, not above.
  • Even though mortgage rates are higher now than they were through the pandemic, they are still more competitive than historical norms.
  • Trying to time the market is nearly impossible. Instead, if you are offered a rate that you like, lock it in with your lender since it may change in a matter of minutes.
  • Get quotes from multiple lenders on rates since your monthly payment will significantly change based on your locked in rate.

Top Tips for Denver metro home sellers:

  • Fewer buyers may be bidding over asking price, but it’s still a competitive market.
  • Mortgage demand fell last week, hitting the lowest point since 2000, according to the Mortgage Bankers Association.
  • Demand for mortgage refinances are down 83% from a year ago.
  • Prices dipped 3.33 percent from June 2022 compared to July 2022. We will likely see prices continue to drop as we head into the cooler months.
  • Establish a selling timeline for your home and be ready to make price reductions as needed to make that timeline work. If your home takes three weeks to sell, what does that mean for your moving plan?

Key Quotes from Denver Metro Association of Realtors:

  • “Every indicator points to the market shifting closer to a buyer’s market. The month-end active listings increased 21.53 percent last month. Pending and closed deals decreased and days in the MLS increased by exactly 30 percent.”
  • “Buyers have become more specific about what they are looking for and frequently question if, and how much, below the asking price they can offer. Gone are the days that a seller can simply put a sign in the yard and expect their home to sell.”

July’s 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 
July 2017 29 $496,282 $324,187 6,551 4,879 5,280 +9.56 %
July 2018 20 $529,124 $350,437 6,456 5,043 5,764 +7.58  %
July 2019 25 $551,516 $362,922 6,632 5,415 5,944 + 4.27 %
July 2020 24 $601,863 $383,174 7,122 6,664 7,122 + 9.27 %
July 2021 9 $699,795 $442,949 7,150 5,820 6,061 + 16.4 %
July 2022 13 $781,631 $475,811 6,334 4,279 4,438 + 11.04 %

Source: DMAR

mortgage rates | denver real estate

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

 

Usaj Realty would love to carefully assist you with finding your next place to call home or selling your current property. Our acumen, attention to the market, and negotiation skills will all go to work in order to advocate for your goals. Email us at info@usajrealty.com or call 720.398.2999. We measure our success by the happiness of our clients!

Read Denver Metro Association of Realtor’s 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, and 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

Jason Tanabe

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