Interest Rates Pass 7 Percent at End of September
According to the Denver Metro Association of Realtors (DMAR), the average home is taking 26 days to sell and fewer homes landed buyers in September, with only 3,848 homes going under contract (down from 5,689 in September 2021). September interest rates rose again and crossed into 7% territory.
Sale Prices Continue to Rise
Even with fewer buyers out there, homes appreciated year-over-year by 8.41 percent on average. Month-over-month, prices are up 2.2 percent. The average home sale price in Denver Metro was $671,024.
Homes Taking an Average of 26 Days to Sell
In September 2021, homes were taking a mere 13 days to sell, and this year that number jumped to 26, a much more typical number for this time of year.
The close-price-to-list-price ratio (sales price of a home divided by the last list price) was down to 98.91 percent. This means that most buyers are paying almost exactly the asking price.
September saw an increase in active inventory by 93.48 percent compared to September 2021. Denver Metro only had 3,971 homes for sale at the end of September 2021; at the end of September 2022, we had 7,683.
Overall Picture
Buyer demand has drastically cooled compared to last year’s red hot market. While we are still technically in a seller’s market, homes are taking longer to sell and homebuyers are enjoying more options albeit with the pain of higher mortgage rates.
Sellers will need to adjust their expectations as the landscape for demand looks very different than it did this time last year, especially as interest rates are expected to continue to increase until inflation gets under control and a recession looms.
Key Quotes from the Denver Metro Association of Realtors:
- “Traditionally, a market with less than three months of inventory is considered a seller’s market. In direct relation to that, a market with more than six months of inventory is considered a buyer’s market, which means that three to six months of inventory is defined as a balanced market.”
- “Price reductions are rising, while active listings at month end rose 10.72 percent to 7,683. Pending sales declined 15.41 percent for both detached and attached homes month-over-month, which directly relates to a 6.38 percent decline in sales volume month-over-month.”
- “Due to an economic crash and a global pandemic, the cycles were extended, but a correction is needed. The market is entering a period of neutrality where the bullish ways of extreme markets make way for a stage of compromise, with buyers and sellers working together for a win-win experience.”
September 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 | |
| Sept. 2017 | 32 | $476,051 | $313.096 | 5,842 | 4,427 | 5,178 | + 8.84 % |
| Sept. 2018 | 26 | $502,034 | $347,629 | 5,953 | 3,983 | 4,597 | + 6.83 % |
| Sept. 2019 | 33 | $535,032 | $357,500 | 6,038 | 4,506 | 5,343 | + 6.06 % |
| Sept. 2020 | 23 | $599,418 | $384,397 | 6,456 | 5,850 | 6,376 | +12.14 % |
| Sept. 2021 | 13 | $688,629 | $446,800 | 6,125 | 5,233 | 5,689 | + 15.11 % |
| Sept. 2022 | 26 | $745,947 | $486,773 | 5,237 | 4,113 | 3,848 | + 8.41 % |
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
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.
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