Denver Real Estate Market Report for September 2022

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.

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

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.