The July market stats are out, and our roundtable panel is back to discuss what they mean. Across Denver, Colorado Springs, and Pueblo we’re seeing seasonality return to the market. After a couple of years where there was consistently low inventory and buyers had to make multiple, above-list offers, they finally have some breathing room. They can look at a few houses, take some time to make a decision, and then submit an offer.
With interest rates bumping would-be buyers back into the rental pool, investors have a unique opportunity to keep buying property and take advantage of rising rents and an increased demand.
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 “#404: Finally, Some Breathing Room in the Market. July 2022 Colorado Stats and Roundtable Discussion.” 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
Inventory
- +22% from last month
- +82% from last year
- Homes did a little better than condos, but both did great.
- The average active listing count in July is 15,900.
- Last year: 4,100 (record low for July)
- Now: 7,350
Closed Count
- -21% from last month.
- -32% from last year.
- Similar performance for homes and condos.
- The last six times that mortgage rates spiked by 1% or more, the national market experienced a 12% decline in closed units.
- This is a much more significant decline than you would historically expect.
- YTD, we are off -12% from last year.
- We are close to 2020 volume levels (which were depressed by COVID).
Price
- -3% from last month.
- +11% from last year.
- Homes and condos did about the same.
- Overall, I don’t expect the entire market to decline, but I do anticipate some neighborhoods will lose some ground.
- In 2007/08, the overall market declined 25%. Strong areas like LoHi were stable and lost nothing. Weak areas like Aurora North and SW Denver County lost 60-70%. Each neighborhood will have a different pricing journey.
- YTD prices are +14%.
Days on Market
- +30% from last month (grew from 10 days to 13).
- +44% from last year (grew from 9 days to 13).
- No surprise that marketing times are increasing.
Showings
- Somewhat slower than last month.
- Slower than this time last year.
Colorado Springs Stats and Observations
Listings
- Homes
- Inventory down 11% from last month
- Inventory down 4% from last year
- Condos
- Inventory was down even more, -11% to -15%
- This is a stark contrast to Denver where inventories grew significantly
Sales Count
- Homes
- Down -18% vs last month
- Down -24% vs last year
- While dismal, it was better than Denver’s -30% vs last year.
- Condo sales volume didn’t decline quite as much.
Price
- Homes
- +1% from last month
- +11% from last year
- Denver saw a small decline from last month.
- COS Condos were similar
Inventories are up a lot from last year, which is wonderful to see.
Note: The above Executive Summary is from Lon Welsh of Your Castle Real Estate.
Denver Housing Trends
Colorado Springs Housing Trends
Get Started Building Your Own Denver or Colorado Springs 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
Finally, Some Breathing Room in the Market
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