Across the state of Colorado, the median price of a single-family home was $583,125 in the month of June, according to a new report from the Colorado Association of Realtors.
That price was a slight 1.1% decrease from a year ago. The average price of a single-family home in Colorado had no marked change from last June, at $725,408 last month, according to the report.
Sold listings slowed 20.8% from last June, with 6,786 single-family homes selling last month compared to the 8,566 listings that sold across the state in June of last year. New listings hitting the market also decreased by 23.7%, from 12,517 single-family listings in June 2022 to 9,545 new listings last month.
The month’s supply of inventory for single-family homes in Colorado — a metric that measures the amount of time it would take to sell existing listings if no new listings went live — was at 2.3 months in June, according to the report. That’s a 21.1% increase from last June’s 1.9 months. Single-family homes were taking 37 days to sell in June, a 60.9% increase from the 23 days it took to sell a home in June 2022.
Meanwhile, in the seven-county Denver metro area, the median price of a single-family home was $630,000 in June, a 2.4% decrease from a year ago. The average sales price of a single-family home in the Denver metro area was $757,713, a 1.5% decrease from a year ago.
The number of sold single-family listings in the Denver area was 20.7% less than a year ago, going from 4,935 sold listings in June 2022 to 3,914 sold listings last month. Denver saw 5,306 new listings in the metro area in June, a 28.5% decrease from a year ago.
Days on the market have also increased for Denver-area single-family homes by 116.7%, from 12 days in June 2022 to 26 days last month.
“While every market presents its opportunities and threats, the headline this month is that we’ve started the path back to balance and when speaking about ‘good’ vs. ‘bad,’ the current climate is really neither of the above,” Realtor Matthew Leprino said in the report regarding Denver’s specific housing market.
According to CAR’s affordability metric that takes into account median home pricing, interest rates and median income, the Denver metro area is at its lowest level of affordability since 2010, when CAR began tracking. In the Denver area, a family making a median income only has 48% of what it needs to qualify for a mortgage on a median-priced home with a 20% down payment, according to CAR.
CAR provides data and analysis focused on specific counties and zip codes in Colorado. Last month, for example, Greenwood Village home prices increased by 23.7% to a median home price of $1.175 million, while inventory saw a 46% decrease. Broomfield also saw price increases last month.
“Broomfield may be one of the only shining lights this month. It is one of the only counties that showed a price gain in both single-family homes and townhomes,” Realtor Kelly Moye said in the report. “The average days on the market remains about 30 days as this area continues to outperform its more expensive neighbor. Popular new construction may be the reason as buyers flock to brand new homes with builders offering rate buydowns as incentives.”
In Douglas County, Realtor Cooper Thayer said in the report that new single-family development projects will continue to raise inventory, and the median price of a single-family home in Douglas County remained at $725,000.
“While a slowing market may appear concerning on the surface, it’s crucial to remember that the fast-paced, expensive conditions we’ve experienced over the past few years have been abnormal, and these changes are best characterized as a normalization of the market,” Thayer said in the report. “Douglas County is and will continue to be one of the most desirable real estate markets in the country, and my outlook on property values is far from worrisome.”
By Kate Tracy – Reporter , Denver Business Journal
