The number of new homes that entered the market in December decreased from November by 35.19 percent. Typically, the market sees a seasonal decline in new listings as sellers pull back to focus their time and energy on the holidays. However, throughout the year, inventory has gradually increased, resulting in homes staying on the market longer before going under contract, not necessarily more sellers entering the market. In December, the median days in the MLS was 30, up from 21 in November and up from five days in December 2021. Year-to-date, the total number of listings in 2022 was 60,164, down 9.30 percent from 2021 and 2020, 2019, and 2018. As a result, the total number of closed properties in 2022 was 50,743, down 20.84 percent from 2021.

The increase in interest rates and decrease in buyer demand impacted home prices. The median sale price for detached homes in December was $600,000, down 2.44 percent from November and 0.01 percent from December 2021. The attached homes also showed a month-over-month decline from $410,000 in November 2022 to $405,000 in December. Compared to December 2021, the median sold price for attached homes increased by 5.74 percent. For both detached and attached homes, the peak median sale price for 2022 occurred in April, $680,000 and $440,000, respectively.

“The post-pandemic shift back to a more normalized market will take some time,” commented Amanda Snitker, Vice Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “In March 2022, the Federal Reserve started raising the base Fed rate to slow the economy as inflation hit a 40-year high. By April, the real estate market started to show signs of slowing as buyers saw the mortgage rates increase, reducing their buying power. Yet, there are many opportunities for buyers in this market as motivated sellers are more willing to negotiate on price and inspection items and pay down the interest rate for buyers to make the home more affordable. Although the median days in the MLS have increased, it is still a good market for sellers willing to prepare their homes and price competitively.”