Our market update for the metro Denver area for July 2023 is broken down into All Residential, as well as Luxury Residential stats.

Below are links to download our update, as well as a breakdown of the stats in more detail:

• Metro Denver Area Residential Market Update
• Metro Denver Area Residential Luxury Market Update
• Metro Denver Area Residential Market Update Detailed Stats

Metro Denver Area Residential Market Update

The typical Summer slow down in July and August in the Denver Real Estate Market, has many Buyers and Sellers concerned about the overall health of this market!

This Summer slowdown is very common, and happens almost every year, however this one is also driven by the increase of Mortgage Interest Rates to around 7% for a 30 year fixed rate mortgage.

Several factors in our National Economy and World events may also bring some pause to buyer activity, but we have some good news as well for Buyers and Sellers.

Most Economists agree that the Housing Market is more likely to correct itself from the double digit price jumps in home prices over the past few years rather than a crash.

Our prediction is the Housing Recession may be over, and the recovery is very close.

Quick Facts:

• Active Inventory is growing and currently at 6,300 residential homes.
• Buyer demand is still very high, with Buyers anxious to find the right home at the right price with an affordable payment.
• Single Family Homes average price in July was $782,624 which is 0.41% higher than July 2022, and Attached Homes were at $484,000 which is 1.73% higher than July 2022.

Buyers, this is your opportunity to find a great home at a fair price and terms and realize that prices are not coming down like many expected. Lock your price in now, and you can always refinance as Interest Rates lower in the near future.

Sellers, the buyer demand is real so this is the right time to price your home competitively, prepare it to show very well, and consider offering a 2-1 Buydown on interest rates to attract the best buyers and increase affordability.

The Spring market was slower than expected, and the Summer market is crawling, we expect a very healthy Fall Market!

Enjoy the fast moving Summer! Buyers Get Ready, Get Set, Go!

Metro Denver Area Luxury Market Update

While the overall number of Luxury transactions are down approximately 26% this year compared to last year, prices have held with a slight increase from last year of 1%. While 1% doesn’t sound like much just think back about how significant the price increases were last year and this makes a 1% increase a strong number.

The large number of buyers in the market has kept the demand going strong and has kept overall sales numbers up in spite of the increase in interest rates to around 7%.

Buyers are clearly getting over paying a higher interest rate in favor of having a home that meets their current needs.

As always pricing for sellers is critical and momentum in the Luxury market depends upon price range.

For homes in the $1M to $1.5M range there is a 2.3 months supply of homes on the market with average days on the market of 19 to under contract and 50% of homes in this price range are going under contract in the first 7 days on the market.

For homes in the $1.5M to $2M range there is a 5.8 month supply of homes on the market so pretty much an even buyer/seller market with average days on the market of 65 to under contract and 16.7% of homes in this price range are going under contract in the first 7 days on the market. This price range is clearly a soft spot in the market.

For homes in the $2M to $3M range there is a 2.7 month supply of homes on the market with an average days on the market of 75 to under contract and 33.3% of homes in this price range are going under contract in the first 7 days on the market.

What does this mean?

Sellers, you must price your homes cautiously and carefully. Good/updated homes in good neighborhoods are selling at top dollar and are selling quickly.

Buyers, you need to buy now before prices continue to increase and you get priced out of the market. You can always re-finance down the road to a more favorable interest rate when the opportunity comes along.