The Biggest Signs Colorado Housing Market Is Coming Back to Earth

The Colorado housing market has been running at hyperspeed over the past several years, despite some of the country's worst affordability in Denver and beyond. But things may finally be on the cusp of change.

According to a new report from the Colorado Association of Realtors, sales of single-family homes, townhouses and condominiums fell dramatically in September. The number of single-family homes purchased dipped by a striking 14.6 percent, while townhouse-condo transactions tumbled by 15.2 percent.

Right now, the sales decrease hasn't resulted in lower prices. Both the median and average sale price for a single-family home went up substantially last month — 5.6 percent and 7.1 percent, respectively. And the same was true for townhouses and condominiums, with the median category rising by 12.3 percent and the average going up by 6.9 percent.

Two likely reasons for these developments involve how many months of inventory are available and the number of active listings. According to CAR, a balanced market tends to have a four-to-seven-month supply of single-family homes, townhouses and condos available — and by that measure, Colorado remains seriously out of whack. Likewise, active listings are on a steady decline.

The supply of single-family homes is estimated to last 2.6 months, with townhouses and condos registering at 2.2 months. Meanwhile, the active listings in September for single-family homes (19,390) and townhouses and condos (5,005) represent drop-offs of 9.2 percent and 8.4 percent from the prior year.

These last figures suggest that Colorado remains a seller's market even though sales are falling. Clearly, something's got to give.

Continue for more about what the hell's happening in the Colorado housing market.

SINGLE FAMILY MARKET OVERVIEW

New Listings:

September 2017: 8,639
September 2018: 8,915
Percentage change: +3.2 percent

Pending/Under Contract:

September 2017: 7,263
September 2018: 7,301
Percentage change: +0.5 percent

Sold Listings:

September 2017: 7,891
September 2018: 6,740
Percentage change: -14.6 percent

Median Sale Price:

September 2017: $355,000
September 2018: $375,000
Percentage change: +5.6 percent

Average Sales Price:

September 2017: $426,314
September 2018: $456,772
Percentage change: +7.1 percent

Percent of List Price Received:

September 2017: 98.9 percent
September 2018: 98.8 percent
Percentage change: -0.1 percent

Days on Market Unit Sale:

September 2017: 46
September 2018: 45
Percentage change: -2.2 percent

TOWNHOUSE-CONDO MARKET OVERVIEW

New Listings:

September 2017: 2,702
September 2018: 2,581
Percentage change: -4.5 percent

Pending/Under Contract:

September 2017: 2,394
September 2018: 2,308
Percentage change: -3.6 percent

Sold Listings:

September 2017: 2,478
September 2018: 2,102
Percentage change: -15.2 percent

Median Sale Price:

September 2017: $271,550
September 2018: $305,000
Percentage change: +12.3 percent

Average Sales Price:

September 2017: $366,754
September 2018: $392,078
Percentage change: +6.9 percent

Percent of List Price Received:

September 2017: 99.3 percent
September 2018: 99.1 percent
Percentage change: -0.2 percent

Days on Market Unit Sale:

September 2017: 44
September 2018: 39
Percentage change: -11.4 percent

MONTHS SUPPLY OF INVENTORY

September 2018

Single family: 2.6
Percentage change from prior year: -10.3 percent
Percentage change from prior month: -3.7 percent

Townhouse-Condo: 2.2
Percentage change from prior year: -8.3 percent
Percentage change from prior month: -4.3 percent

ACTIVE LISTINGS

September 2018

Single family: 19,390
Percentage change from prior year: -9.2 percent
Percentage change from prior month: -3.9 percent

Townhouse-Condo: 5,005
Percentage change from prior year: -8.4 percent
Percentage change from prior month: -6.6 percent