March housing data for the seven-county Denver metro area and across Colorado may signal a return to more normal market conditions since the onset of the pandemic, according to the monthly Market Trends Housing Report from the Colorado Association of Realtors.
“Median sales prices are down, days on market have skyrocketed, and homes are back to selling below asking prices on average,” said Cooper Thayer, a CAR spokesperson and realtor with Keller Williams Action Realty.
“However, it’s important to remember that the last few years were an anomaly, and we are currently in an arguably healthier market than before. In fact, last month’s market may have been the most ‘normal’ we’ve seen since the beginning of the pandemic.”
Higher mortgage rates helped calm the market, with buyers no longer offering thousands over the asking price and sellers being more reasonable about pricing.
“Due to the rise in interest rates, which has affected the overall affordability of properties, buyers are being more discerning in their buying decisions and are willing to wait until that right home comes on the market,” said Karen Levine with RE/MAX Alliance. “When it does, they are willing to pay full price or better, but they have not been as willing to settle as they were when interest rates were in the 3% range.”
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Report highlights
Denver metro:
- The median sales price for single-family homes dropped 5.5% from March 2022 to $599,900.
- Average days on market for single-family homes skyrocketed 200% from March 2022 to 45 days.
- Months of inventory supply for single-family homes nearly doubled from 0.7 to 1.3 months.
- Active listings jumped more than 45% in March 2023 compared to a year ago, with 4,818 single-family homes available.
Statewide:
- The median sales price for single-family homes dropped 4.2% from March 2022 to $551,000.
- Average days on market for single-family homes increased 100% from March 2022 to 56 days.
- Months of inventory supply for single-family homes increased from 0.9 to 1.6 months.
- Active listings jumped nearly 42% in March 2023 compared to a year ago, with 9,933 single-family homes available.
Limited housing stock expected to keep prices high
Skylar Olsen, the chief economist at Zillow, says home prices are unlikely to continue declining due to limited inventory.
“We can’t promise that home prices will continue to fall because the inventory is not there to allow that to happen,” Olsen said. “I really don’t know where the inventory comes from to help prices come down.”
The news and editorial staffs of The Denver Post had no role in this post’s preparation.
