According to an update from the Denver Metro Association of Realtors, Metro Denver’s housing market continued to slump in September, with sales of homes and condos declining and the list of active listings in the market growing by a record monthly amount.
“In August, we saw a relatively small amount of homes on the market,” Andrew Abrams, chairman of the DMAR Market Trends Committee, said in the monthly Market Trends Report.
The number of homes and condos sold between August and September fell 10.9% to 5,233, a fifth less than the number sold in September 2020, when prices were lower and buyers desperate to find more living space due to the pandemic.
The decline in sales was accompanied by a 10.9% monthly increase in active listings, which was much higher than the 0.8% gain typically experienced between the two months and the record two months. But supply, at 3,971 active listings, remains historically tight.
Prices remained fairly stable from month to month, with single-family home prices declining, while condo and townhome prices rose.
The average price buyers paid for a single-family home in September was $575,000, down 0.86% from August. For the year, the average price is a strong 12.75%. For condos, last month’s average closing price was $380,000, an increase of 1.9% and an increase of 13.4% year over year.
In a separate update to its Home Price Index released Tuesday, CoreLogic said Metro Denver home prices are up 19.5% year over year through August, well above an 18.1% gain in its national home price index. But it labels Denver an “overvalued” market and predicts that the price will increase by only 1.5% over the next 12 months.
Abrams said some buyers are waiting for home prices to rise as the market cools. But even if it does, buyers may not necessarily see lower monthly payments because inflation concerns put upward pressure on mortgage rates.
“If interest rates go up, even at a lower price, your payments could be higher. Word of advice: jump into the real estate market now. Those who wait will literally pay for it,” he said. .
Abrams said last month the most competitive price range was for homes between $300,000 and $399,999 with only half a month’s supply, while the best-supplied segment was for properties over $1 million, where buyers had to buy a home. Supply was available for 2.16 months.