Market Trends Report July 2022
DMAR has released the housing statistics for July 2022. Experts agree that the Denver housing market is officially in a more balanced market. When supply matches demand, this is considered a balanced market.
For the last several years, buyers in Denver have been required to bring very attractive terms to sellers to win contracts. High demand for homes has been driven by very low inventory levels caused by skyrocketing home values. Unprecedented low barriers to entry, such as great interest rates, a booming economy, and large equity reserves created a large number of buyers without any incentives for sellers to move.
Recent increases in interest rates, alongside a slowing of the economy has begun to balance out the supply and demand issue. Since many buyers are unable to afford as much house, the number of buyers has gone down. Inventory levels are starting to rise as well, as homeowners are in a better place to compete for replacement homes, and the expectation of slowing equity gains is around the corner.
Even with the shift in the market, Denver has not shifted to a buyer’s market. Close price averages are down from last month, but still up 11% since last year. This means that home values are still increasing. Days on market is low at 11 days on average, which is not much time, even though it is 44% higher than last year.
Last year the housing market experienced several factors that have never happened in history. From the pandemic, to the exponential growth in values, to corporate investment in real estate, and several other factors, that market was a perfect storm that nobody could predict.