Should Investors Prepare for a Crisis? June 2022 Market Stats and Roundtable Discussion
The June 2022 market stats are in, and our roundtable is back to discuss and dissect them. As we head toward a recession, should investors start to worry we’re in a real estate bubble? Listen to the episode to hear what our team thinks, and get the latest updates on the Denver, Colorado Springs, and Pueblo markets. To see all of the charts discussed on the show, check out this blog post

The June 2022 MLS market stats for Denver, Colorado Springs, and Pueblo are now out, and our roundtable is back to talk about what it all means.  Joining me in the studio are Envision Advisors agent Preston Newberry, lenders Joe Massey of Castle & Cooke Mortgage, and Travis Sperr of Renovo Financial.

Make sure to listen to the podcast or check out the YouTube video for the full discussion. 

Three Learning Options!
  1. Listen to the podcast “#393: Should Investors Prepare for a Crisis? June 2022 Market Stats and Roundtable Discussion” 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.

Key Stats to Understanding the Market

We went around the table and asked everyone which stat they thought was most important this month.  Scroll down to check out these stats for yourself.

Preston: Inventory and active listings.  They’re up at 66% from last month and 94% from a year ago.  Even still, we only have 6,000 active listings on the market in the Denver metro area. 

Chris: The 15 year chart showing active inventory and closed under contract.  Between Q2 and Q3 in 2020, we had more properties under contract than we had active listings.  The lines inverted from where they’d been traditionally.  In the last month or two, we’ve seen it revert back to normal.  It’s still not a buyer’s market, just a more balanced seller’s market.

Joe: Premiums.  For contracts closed in June 2022, the average premium to list price was 3.1%, meaning that a property listed at $300K sold at $309K.  For the June stats, those properties were under contract in late April and May, before the market shifted.  I expect we’ll see premiums flatten out going forward thanks to the increase in inventory. 

Travis: There were 6050 listings in June, up so much from where we’ve been.  We’re still right in line with the last 15 years of closing volume; that chart is almost the same every year.  The average number of listings in June is 15,000, so we’re still significantly under that, though that stat may be artificially inflated from the great recession.

Are Investors Too Optimistic?

Travis recently watched a video from Christopher Naghibi, and wondered if he should start to worry about the market.  Everyone he knows is involved in real estate professionally, and he’s concerned that he’s in an echo chamber.  Are real estate professionals too optimistic about the market?

Joe’s answer is pretty straightforward: the universe doesn’t love him enough for the market to be in a bubble.  Back in 2008, he didn’t have the skill or capital to take advantage of the market shift caused by the housing crisis and recession.  Now that he could, he knows he’s not that lucky.

Preston points out that sometimes we have a couple of years where things aren’t as good or strong as they were before.  But the long term trend is that real estate always rebounds. 

I look at it this way: If I have capital to deploy, where would I put it?  I can’t think of a better place to put it than real estate or my own businesses, two things I plan on investing in over the next 12 months.  I know my real estate investments won’t perform like they have the past couple of years, but when I look at the long term, I don’t see a better option.

Colorado Housing Trends June 2022

June 2022 Market Stats and Roundtable Discussion: Data Snapshot table
June 2022 Market Stats and Roundtable Discussion: Denver Market Trends table
June 2022 Market Stats and Roundtable Discussion: Average Days in MLS for Denver graph
June 2022 Market Stats and Roundtable Discussion: New Listings in Denver graph
June 2022 Market Stats and Roundtable Discussion: Residential Close Price in Denver graph
June 2022 Market Stats and Roundtable Discussion: Month End Active Listings and Month End Closed Homes in Denver graph
June 2022 Market Stats and Roundtable Discussion: Showing Trends for Denver Graph
June 2022 Market Stats and Roundtable Discussion: Showing Trends for Southern Colorado graph

Get Started Building Your Own Denver 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. 

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Should Investors Prepare for a Crisis??

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