As the Denver market normalizes, active inventory declined slightly to 7,290 homes at month’s end. However, this is an increase of 115.94 percent year-over-year. While this number reads as a jump, the current inventory is still less than the pre-pandemic inventory numbers of 8,557 active listings in October 2019.
Rising inflation and interest rates are undoubtedly changing the market landscape, showcased in new listings, which declined 26.73 percent from last month and 27.92 year-over-year. As a result, Denver Metro saw its first slight decline in average and median sales prices this month. However, sale prices skyrocketed over the last two years; As a result, the market is well ahead of historical appreciation metrics of where the Denver market should be had it not experienced a pandemic-fueled buying frenzy. Overall, while prices flatten out, the historical appreciation that sellers have seen cannot be ignored.
“There are opportunities to look at the silver lining of every scenario,” commented Libby Levinson-Katz, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “This evolving marketplace allows buyers more options and the gift of time to decide on a home while negotiating terms that suit their needs. Meanwhile, sellers can analyze the marketplace to position their homes correctly while being able to experience a great return on investment due to rising prices over the last few years. While the market changes, the past two years continue to represent the exception, not the rule. If one was to remove 2020 and 2021, the Denver Metro market trajectory is on pace with where it was predicted to be, had COVID-19 not happened.”
As prices adjust, the median days in the MLS continue to increase, up 240 percent from five days last year to 17 days this year. While this number continues to grow, many homes on the market are priced based on peak market activity and are thus incorrectly priced for the current market. These homes have inflated prices which the market has rejected, and are increasing days in MLS. These properties were either finally withdrawn from the market or the prices were adjusted before selling.