Metro Denver Still a Seller's Market (for Now), Realtors Say

This three-bedroom, three-bathroom, 2,573 square-foot home at 3402 South Ivanhoe Way is listed at $750,000, just under the average sale price in greater Denver during July according to Colorado Realtors Association data.
This three-bedroom, three-bathroom, 2,573 square-foot home at 3402 South Ivanhoe Way is listed at $750,000, just under the average sale price in greater Denver during July according to Colorado Realtors Association data. Google Maps
Is metro Denver still a seller's market? That's the word from contributors to a new report from the Colorado Association of Realtors, despite suggestions in the most recent study from the Denver Metro Association of Realtors that hinted a buyer's market could be on the horizon.

While the $635,000 median price for Denver area homes during July is down 1.7 percent from June, that figure is 10 percent higher than it was at this time last year. And the average July sale price of $756,778 is also up more than 10 percent on a year-over-year basis.

The drop in median prices should be taken as something of a reality check, according to Denver-based realtor Matthew Leprino. The median price of a freestanding home in his area was lower in July ($723,750) than in June ($750,000), but "before you read that last number and wonder if that means prices are decreasing, the answer is a resounding no," he says. After all, June typically represents the seasonal peak for housing costs, and those in July are still "record-setting."

According to CAR, the inventory of active listings in metro Denver is up by nearly 50 percent from last year. As a result, the area has an estimated 1.9-month supply of inventory for single-family homes, a 72 percent improvement over July 2021 and the highest volume in around two years. But new listings, homes whose sales are pending or under contract, and sold listings are all down on an annual basis, while prices most assuredly are not.

The following graphic provides details:
The specific factors vary from place to place. According to realtor Sunny Banka, the best description for the market in Aurora and Centennial is "fickle. The good news for buyers is that the inventory is up about 30 percent over last July, giving buyers more choices and the opportunity to avoid bidding wars and some of the craziness that we saw earlier in the year. Average days on the market is also up over last year." For sellers, meanwhile, "the good news is that prices are still up over last year. In Aurora, prices are up 12 percent, to a median price of $555,000, and in Centennial prices are up 8 percent, to a median of $680,000.

"We are seeing a large number of contracts fall out, putting those properties back on the market and creating additional opportunities for buyers who are keeping a close eye," Banka adds. "We are also seeing numerous emails each day announcing price reductions. The nice, clean, updated properties in high-demand locations are still seeing multiple offers and, in some cases, offers over list price."

Realtor Kelly Moye specializes in Boulder, where prices have risen by 11 percent since the beginning of 2022, she notes, and while inventory has increased partly because of climbing interest rates, demand remains vigorous. She also handles Broomfield, and "Broomfield homes are still flying off the market in under eleven days, and prices are up 9.5 percent since January," she says. "With only 1.8 months of supply, we are still in a seller's market."

So is Douglas County, according to realtor Cooper Thayer. With closing prices falling from 101.5 percent of list to 100.2 percent, "it’s pretty clear that sellers have begun to take the advice of many agents to list their home more modestly," he says. "Our buyer clients are much more confident to submit below asking price offers and negotiate inspection items more than any other time this year."

Even so, he assures sellers: "Don't be dissuaded. The Douglas County market remains incredibly desirable and is certainly still a seller’s market, though it may take a little more effort to sell your home."
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Michael Roberts has written for Westword since October 1990, serving stints as music editor and media columnist. He currently covers everything from breaking news and politics to sports and stories that defy categorization.
Contact: Michael Roberts