How's the Denver Real Estate Market? 

September 2022 market updates on August 2022 data

Has our Denver real estate market flipped to a buyer's market?  Some of the data from last month shows signs of a turn but what can we expect to see over the next few months?

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.

The median days in the MLS for August increased for detached homes to 13 days. The close-price-to-list price ratio of detached homes dropped below 100 percent for the first time since January 2021.  

I'm Cher Revolinski, from EXP Realty. I'm a Realtor here in Denver Colorado. I'm a bit of a data junkie and I love providing guidance to my clients during this shifting market. Be sure to like, comment or subscribe to keep informed as we navigate this market!

So ... Is this a crash? The Denver Metro real estate market has regular seasonal fluctuations that are affecting these numbers.  We historically see the majority of our home value appreciation through May and then it levels off with only slight increases in the Fall.  So far, we are on par for that.  While we have some numbers to watch, we can't claim a significant trend by this month's report alone.  The economy has caused a lot of instability and unrest across the nation. People are talking about - and worried about - interest rates and inflation.  Higher Interest rates create higher monthly mortgage payments and that's been a difficult trend for our buyers to get used to and afford.  


Year-to-date, the Denver Metro is up 8.49 percent in median sales price. That translates to the average homeowner gaining over $49K in equity. New listings dropped 15.50 percent year-over-year. Sellers who were taking advantage of high equity and selling their home to cash out are no longer incentivized to move. Their current interest rate is most likely significantly lower than what they could get if they bought. Although a lot of our homeowners have no mortgage and downsizing has still been a direction we see occurring.


As we head into Fall, the Luxury Market (which is any homes priced over $1M) saw similar occurrences to other price segments with new listings. In August new listings were down 18 percent month-over-month for detached homes and 18 percent for attached.   Our terminology of an "attached" home simply means it's a condo, townhouse or some style of home that shares walls with another home. The total sales volume in August was down 19.29 percent from July and 16.80 percent year-over-year. Sales volume year-to-date is up 17.21 percent year-over-year, reflecting the heated first half of 2022 and balancing out as we get farther into the year and seasonally slower months. This luxury market segment has grown rapidly since 2020; the year-to-date sales volume shows a 138 percent increase in two years!  Some of this can be attributed to our appreciating price points here in Denver. We have more homes in this group than we have seen historically.

What does this mean for you as a Seller?  We may have passed the high point of our recent market.  If you're thinking of selling, be prepared to have longer days on market, potentially NOT sell in the first weekend and have buyers be particular if your home isn't fully updated.  

What does this mean for you as a Buyer?  In a single statement - I would suggest it's time to home shop!  While interest rates are higher than they were last year - those were record lows and we aren't likely to see them again. If you need a place to live, if you can afford to purchase and if this is your dream - let's get started.  There are some great deals out there right now and I'm happy to help you sort through the noise to find you the perfect home.  There are some cases where you SHOULDN'T be purchasing a home right now and I'll be covering that topic next.  Be sure to Subscribe to stay informed.  

Big thanks to Denver Metro Association of Realtors for putting together such a comprehensive monthly report! If you'd like to read the full scoop click here --> DMAR Market Trends Report September 2022