The August 2022 market stats are out, and we’re back with another roundtable to discuss what they mean. As inventory increases in both Denver and Colorado Springs, we’re seeing a slight shift in power back towards buyers. We still have a long way to go to reach a balanced market, but the trends are consistent.
Rising interest rates may cause some homeowners to stay where they are in the short and medium term, which can affect inventory. These rates are also making it harder to cash flow, so investors might want to try different strategies and examine their overall portfolio to figure out their next move.
To hear the full discussion with Envision Advisors agents Jenny Bayless and Preston Newberry, lenders Joe Massey of Castle & Cooke Mortgage, and Travis Sperr of Renovo Financial, and me, listen to the podcast or watch the YouTube video.
- Listen to the podcast “#410: August 2022 Market Update: Increased Inventory = More Power for Buyers” Denver Real Estate Investing Podcast
- Watch the YouTube video (at the bottom).
- Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.
Denver Market Stats and Observations
- 6,940 listings at end of August.
- + 94% from last year
- Homes up a little more than condos
- Average number of listings in August (1985-current): 15,900
- We’re still less than half of the inventory that you’d consider “normal”
- Our last “normal” August (2019) had 9,400 active listings
- -30% from last year, about the same decline as we saw in July
- Consistent with most of the western US states
- Fannie Mae’s economist expects the number homes sold (all US) for all 2022 to be off 16% from 2021
- YTD, Denver is off 14% from last year’s YTD
- +7% from last year
- Down -5% from last month
- Homes and condos had similar patterns
- No surprise, there is an increasing number of price reductions on listings.
- A Redfin analysis shows that people moving to Denver have home budgets +12% higher than people that already live here. Apparently many are moving from high cost areas (likely bringing a lot of equity with them).
Days on Market
- 19 DOM
- Up from last month and last year (11 DOM)
- The average discount (NOT premium) was 0.6%
- Much fewer number of properties selling over ask
- Last August, the average property sold at a 2.5% premium
- 29% of properties closed in July ’22 had seller concessions (average = $5000)
- By August ’22, this increased to 36% seller
- Sellers are competing to find buyers (finally!)
Colorado Springs Market Observations
- While there was a drop in the number of new listings vs. same time period the year before (as well as the number closed), neither drop was as severe as we experienced in the Denver market.
- There was an encouraging lift in the total active inventory!
Note: The above Executive Summary is from Lon Welsh of Your Castle Real Estate.
Denver Housing Trends
Colorado Springs Housing Trends
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