All major statistical categories point towards the market slowing down. Days in the MLS went up 120 percent since last year at this time, and the close-price-to-list-price ratio dropped below 100 percent for the first time since July 2020 to 99.41 percent. Meanwhile, the median sales price decreased 2.54 percent from the previous month.
“While some individuals will take this as a sign that the real estate market is about to crash, Denver Metro has seasonality in its market, and this is an example of that,” commented Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “With so much instability in the economy and the world, it is difficult to forecast how the housing economy will be impacted. Interest rates are still the biggest factor in their impact on buyer demand as they directly correlate to monthly payments. As the Fed fights inflation, interest rates will continue to be a conversation topic.”
Year-to-date, the Denver Metro is up 8.49 percent in median sales price. That translates to the average homeowner gaining $49,233.51 in equity. New listings dropped 15.50 percent year-over-year. Sellers are no longer incentivized to move as their current interest rate is significantly lower than what they could get if they bought.