Median Price for Single-Family Home Falls for Fourth Straight Month
The median price for a single-family home in the metro Denver area and across Colorado fell for a fourth straight month, signaling a return to a “somewhat normal” market, according to the Colorado Association of Realtors (CAR).
The association’s August 2022 Market Trends Housing Report noted the drop in prices isn’t just due to rising interest rates and inflation, but also due to traditional seasonal slowdown that happens as families settle down from a busy travel season and kids go back to school.
“We are returning back to somewhat normal, a somewhat amount of normalcy that we’ve really not experienced over the last two years,” said CAR spokesperson Matt Leprino in an interview with Denver7 last week.
Across the state, median home prices were at $570,000, up 9.6 percent from a year prior but down $30,000 from their record high four months later. Because of its lower price point, condos statewide saw an uptick month-to-month and were going for a median price of $414,961, down more than $20,000 from its April high.
For the first time since before the pandemic began, the percent of list price dipped below 100 percent across the state for single-family homes. Condos haven’t seen that drop since mid-to-late 2020, according to CAR.
The association was cautious in saying trends had shifted, however, noting that while buyers have a few more options and more time to look at homes before they are under contract, Colorado still remains a seller’s market, as the month’s supply of inventory remains well below the 4-6-month range considered to be a balanced market, according to the report.
Housing affordability remains the most pressing issue for potential homebuyers and the CAR Housing Affordability Index – a measure of how affordable a region’s housing is to its consumers based on interest rates, median sales price and median income by county – continues to hover around its all-time lows for all property types statewide, the report states.
As for those looking to sell their homes in this market? Leprino told Denver7 those looking to have their homes be the most attractive property on the market need to be the best priced.
Pricing strategy has proved to become one of the most important factors in the cooling market. Real estate agents typically rely on trailing six-month comparable sales figures to determine list prices, which are heavily skewed upwards due to the spring boom. The result is that eager sellers hoping to get top-dollar for their homes but resorting to price reductions after spending longer than anticipated on the market.