New listings bring better balance to Denver's housing market, but buyers aren't budging
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A "For Sale" sign stands in the yard of a single family home in Denver. Photo: Matthew Staver/Bloomberg via Getty Images
Metro Denver's housing scene is finding an equilibrium as more homes hit the market, but many buyers aren't budging amid stubbornly high prices and interest rates.
Why it matters: The slow spring selling season is stumping local real estate agents, who predicted a year ago that a boost in inventory would bring buyers back.
What they're saying: "We are not seeing that play out and once again, the truth is the cost of housing is too high — at least in the median price points," Colorado Springs agent Patrick Muldoon said Wednesday in a statement.
- The "uncertainty of the upcoming election" isn't helping, and "many buyers seem to be waiting this one out," added Boulder-area agent Kelly Moye.
By the numbers: May's new listings of metro Denver homes jumped nearly 35% year over year, while new listings statewide rose 24% over the same period, according to a new report from the Colorado Association of Realtors.
- Despite the uptick in inventory, housing prices haven't dropped. Compared to a year ago, the median price for single-family homes is up 1% in the metro and 4% statewide.
- Yes, but: Prices for condos and townhomes are dropping, with a dip of 3.5% in the metro area and about 2% statewide.
Zoom in: Denver County's median close price for single-family homes was $625,000 last month, an 18% increase from the end of last year.
Stunning stat: For the first time in nearly 12 years, there was more than three months of inventory in Denver County, with over 1,700 new listings and only 1,013 sales closed. Over the last decade, Denver's inventory hovered around two months.
- "The current level of inventory is a strong indication that we are experiencing a balanced market for the first time in over a decade," Denver County-area agent Cooper Thayer said in a statement.
The big picture: Since 2018, Colorado homeowners have faced a 57% rise in insurance premiums, worsening affordability issues for entry-level buyers, industry experts say.
- Recent property tax increases, high prices, soaring HOA dues, rising insurance costs, and inflation have further reduced activity in the lower price ranges.
What we're watching: Hope for new homebuyers could be around the corner. "If all goes well, inflation rates will continue to decelerate, and entry-level housing can become more attainable," Thayer said.