July 2023 Housing Market Update

Elevated Interest Rates begin to impact Appreciation

-Housing market activity in the 11-county Denver Metro area remained constrained in July. Closings of existing homes were down 14% compared to last year. July typically brings a decrease in closings due to summer vacations and the July 4th holiday. Compared to June, there was a 12% decrease in closings.

-The median price of a Denver Metro area home was $591,200 in July, which is less than 1% lower than last year at this time. After 5 consecutive month-to-month increases, home prices dipped 1% from June to July.

-In July, homes moved off the market in a median of 9 days.

-There was a slight dip in buyer activity in July. The number of listings Under Contract was 4,080, which is 3% less than last year and 1% lower than last month.

-Sellers brought 4,817 fresh listings to the market, down 24% from last year and 12% fewer than last month.

Commentary

When we examined stats for the last couple months and compared them with 2019. We are well below 2019 activity in every way except for interest rates. Interest rates were in the 5% range and the housing market was starting to look like it was headed to a more balanced place. We go back to 2019 because that was the last time the market was not influenced by the pandemic and non-sustainable interest rates. What does this mean for us now? We don’t really know. Everything we know about our housing market feels upside down. Lower inventory usually means higher prices (prices are starting to dip again) and reduced inflation usually means lower interest rates (rates are the same or higher). We are facilitating more cash transactions than ever, and we are seeing more and more buyers being priced out of the market because of interest rates. The road ahead is too hard to predict but we are working hard to keep our clients up to date with all that we know.

In Other News

The Colorado General Assembly recently passed a new radon bill, effective now, requiring more transparency about radon during real estate transactions. The law requires further disclosure from Agents and Sellers about the gas similar to the lead based paint disclosure we use. Our contracts now give Agents and Sellers a formal way to address radon. If you would like to know about the bill that has been passed please click here to read more.

Solar Panel Removal

Some folks are experiencing difficulty getting their Solar Panels removed and put back on while getting their roofs replaced. If this is happening to you please give us a call we have some ideas that might get that new roof on sooner than later!

Coming Soon Listings

We have several listings coming on in the coming weeks, Highlands Ranch, Castle Rock, Aurora. We will be sending a coming soon blast early next week. If you know some looking for some opportunities please send them our way!

If you think The Walters Group can be helpful please don’t hesitate to Contact Us!

Thanks ReColorado for the information/stats