Believe It or Not: Now Is a Good Time to Be a Buyer
The September 2022 market stats are out, and our roundtable is back to discuss what they mean and how the Colorado real estate market is trending. Get updates for Denver, Colorado Springs, and Pueblo; find out why our experts think now is a good time to buy; and get the details on some of our latest deals.
Three Learning Options!
  1. Listen to the podcast “#420: Believe It or Not: Now Is a Good Time to Be a Buyer” Denver Real Estate Investing Podcast
  2. Watch the YouTube video (at the bottom).
  3. Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.

In Denver, inventory and sales prices are up while closed units are down. Despite the increase in inventory, we’re only halfway to a balanced market.  There were 4100 closed transactions in September, which is 1500 fewer than this time last year.  However, the overall average is between 4000-6000, so the Denver metro area is right where it should be for this time of the year and we’re starting to see seasonality again.

Meanwhile, Colorado Springs saw month over month home prices and sales drop slightly.  While the percentages may look dramatic, keep in mind that the base numbers are so small that any slight fluctuation will have a greater percentage impact.

While we don’t have stats for Pueblo, we have reason to believe that the area is withstanding the high interest rates.  Investor friendly realtor Leah Keeling recently helped a client purchase a duplex there with 25% down and a 7.25% interest rate. The property still cash flows $300 per month.

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.

Denver Market Stats and Observations

Inventory

  • Up 94% from this time last year (which was the lowest level for September in 30+ years)
  • Up 11% from last month (that’s probably close to seasonal trend)
  • Homes up more than condos
  • The 7700 active properties is about half of the long term average this time of year (15,700)

Closed Units

  • Down 28% from this month last year
  • Off 8% from last month (again, in the ballpark of normal seasonal slowdown)
  • Homes and condos about the same
  • Last year was a record year, so these drops are not as dramatic relative longer-term trend
  • Comparing YTD sold count, we’re down about 7% from 2018, which was a good year

Under Contract

  • Pending count off 28% from same month last year
  • Off 15% from prior month (that’s probably a bit more than we should expect for a “normal” seasonal drop

Price

  • Up 8% from last year
  • Up 2% from last month
  • Condos up a little more the homes
  • It’s taking more price reductions to attract interest; Denver is among the large cities with the most reductions
  • The nation-wide increase in home prices and rents are large contributors to the overall inflation index

Days on Market (DOM)

  • Taking about double the time from last year (from 13 to 26 days)
  • DOM increased from 20 (Aug) to 28 (Sept)

Discount

  • 0.6% discount this Sept vs. 1.7% premium last Sept.

Colorado Springs Market Stats and Observations

Inventory

  • Homes: Up 127% from this month last year
  • Condos: Up 66% from this time last year
  • Inventory was up slightly from prior month

Number of Units Sold

  • Just like Denver, the sales count was off 26% from this time last year (homes) and -18% (condos)
  • Volumes were off slightly for homes (normal seasonal pattern) and up for condos (unusual for this time of year)
  • YTD, we’re down 9% from the record sales year

Price

  • Homes up 5% from this time last year
  • Condos up 8%
  • YTD we’re up 11%

Months of Inventory

  • 2.1 for homes (up from 0.7)
  • 0.9 for condos (up from 0.5)
  • Still a strong seller’s market; just not as crazy strong as it was last year

Note: The above Executive Summary is from Lon Welsh of Your Castle Real Estate.

Denver Housing Trends

September 2022 Denver Data Snapshot
September 2022 Denver Month End Active Listings and Month End Closed Homes
September 2022 Denver New Listings
September 2022 Denver Residential Close Price
September 2022 Denver Average Days on MLS
September 2022 Denver Showing Trends

Colorado Springs Housing Trends

September 2022 Colorado Springs Average and Median Sales Prices
September 2022 Colorado Springs Average Days on Market
September 2022 Colorado Springs Residential Home Sales
September 2022 Colorado Springs Homes for Sale
September 2022 Colorado Springs Listing and Sales Summary
September 2022 Colorado Springs New Listings
September 2022 Colorado Springs Total Sales YTD
September 2022 Colorado Springs Total Under Contract
September 2022 Colorado Springs Showing Trends

Get Started Building Your Own Rental Property Portfolio

If you have questions about your strategy in a shifting market or want help investing in rental properties, reach out to us.  We want to help you navigate the market to find the right strategy to achieve your goals. 

YouTube Video

Believe It or Not: Now Is a Good Time to Be a Buyer

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Rental Property Spreadsheet • House Hacking Spreadsheet BRRRR Calculator Spreadsheet • Fix and Flip Deal Analyzer Investing Maps • Rehab Pricing Estimator
Authors
Chris Lopez
Chris Lopez is a Denver area real estate entrepreneur and investor, as well as the host of Bigger Pockets’ House Hackerz and the Denver Real Estate Investing Podcast.
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