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Colorado Springs Real Estate Market Updates- August 2023

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Denver Market Stats and Observations for August 2023

ACTIVE LISTINGS

• 6,850 in Aug ‘23, up 9% from August (this is about normal for seasonality).
• Down 1% from same time last year. 
• The average number of active listings at this  time of year is 15,900 (1995 – current).
• No surprise, the continued high rates are not encouraging many sellers to bring homes to market.
• Ratios similar for DSF and condo.

NEW LISTINGS

• 4,850 in Aug ’23, up 8% from last month.
• THIS is new info; usually (historical seasonality) I’d expect to see FEWER new listings.
• It’s great news (esp: for buyers).  I don’t have an immediate sound bite for why this happened.  We are seeing in consumer sentiment surveys that the % of households considering selling keeps drifting up.  As if prospects are acclimatizing to the higher rates and just getting on with their lives.  Let’s hope that is the case and the trend continues.   Note this is an opinion and I don’t have the data to prove this yet.  It could be just an aberration.  
• For context, rates at the start of August were near 7%.  They spiked to 7.5% mid-month, and ended month near 7.0%.
• The new listing count in Aug ’23 was off 6% from Aug ’22.  Rates are higher this year, so that makes sense.

PENDING

• 3,850, up 1% from last month.  Again, we should expect a decline at this time of the year, so this is (modestly) great news. 
• Down 14% from this time last year.  Which makes sense.

CLOSED COUNT

• 3,800, off 2% from last month.  Historically, I’d expect a little more drop than that, so this is also a modestly favorable sign.
• Off 16% from last year.  It’s a tough time out there.

PRICE

• Average Up 5% from last year.  The low inventory is doing a lot to support prices.  No change in that dynamic.  Nor will there be any time soon.
  • Denver is the 4^th strongest housing market in the US.
  • Almost half of owners have >= 50% equity in their property!  That’s got to be a record.
• Median up 1% from last year.
• I don’t find the MTM price changes to be very interesting or actionable.  The media, in its confusion, reports on them.

DOM Days on Market

• 26 in August vs 23 in July.  That’s normal seasonality.
• 26 this year vs 19 last year.  Given the (essentially) static listing count, you’d expect a small change in marketing time, too.  no real trend to discuss here.  Well priced properties in good locations sell rapidly still.  Pricing is more important than ever.

DISCOUNTS

• No real change to speak of; around 0.5% discount from last ask price on average.
  • 30% sold above asking price.
  • At the “hottest” in market (May ’21), 72% of homes sold above asking.
  • Once rates drop, there will be a lot of buyers that rush into market.  Sellers won’t be as fast.  As a result, the degree of competition will heat up a lot, and quickly, when rates drop.  It might not get to 72% selling above ask price (… and no inspection, and no appraisal gap, etc.), but you can count on the fact it won’t be as easy as it is for the buyers right now.

Denver Housing Trends for August 2023

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