As month-end active inventory skyrockets, the Denver Metro hit a new record for the average price of attached properties at $504,193. At the end of June 2021, Denver Metro ended with 3,122 properties on the market. It has almost doubled over the year, with a total of 6,057 properties currently sitting on the market.
Buyers are feeling the woes of the economy. As a result, many first-time homebuyers who were initially pre-approved towards the beginning of the year with a specific interest rate decided to wait to buy until it wasn’t as competitive. But, when they restarted their search in May, they found that it was with an increased interest rate.
On the other hand, many sellers may have closed on a home earlier in the spring, meaning they went under contract with a specific interest rate but decided to wait to sell their own home until they moved into their new one. And the consequence they saw is a long time on the market and potentially slight price reductions.
As we enter the second half of 2022, there is less competition for those getting into the market, but the cost of waiting has been significant for many first-time homebuyers. Interest rates are perceived to be high at the moment but may very quickly continue to increase if inflation doesn’t decrease at a more rapid pace. With the 65.85 percent increase in inventory compared to the previous month, Denver Metro should expect more balance and multiple months with prices not going up. This is reflected in months-of-inventory, which is now at 1.19, the first time it has been above one in months since June 2020.