Your Denver housing market update April 2022.
Welcome to the spring market in Denver!
We saw about 6000 properties come on the market in March and just like the Denver dry ground. The buyers soaked most of them up, putting 5100 properties under contract. This is the first time in four months that we put more homes on the market than we put under contract.
March interest rates went from 3.9% on March 1st to 4.8% on March 31st. Mortgage applications dropped to their lowest level since December 2019.
Six point four percent of the closed transactions dropped their price before receiving an offer. These properties spent an average of 55 days on the market compared to 8 days for the properties that were priced right. Time is money!
Our average close price in March in the Denver market area including Boulder is $705,000. A year ago it was $589,000. We’ve been saying it is a sellers market but with our average price rising by 20% our buyers or benefiting as much as our sellers.
You are going to hear that inventory rose 81%. That number is correct we did rise in inventory by 81% from February. We were so far behind, that 81% isn’t as good as it sounds.
We are behind year to date on new listings and closed properties we do have more inventory but we are so low this doesn’t mean prices are going to flatten out or drop yet.
When I look at our year-to-date numbers we are up on everything except new listings and closed listings. We cannot close more if we don’t have more. We definitely have the buyers we need the properties. This low supply and high demand will continue to push prices up. I don’t see the prices leveling out until we have a significant increase in listings or a significant drop in the buyer pool. It’ll have to be a significant drop.
Douglas County needs to find new water sources. The population is growing so quickly, the county is expecting 60,000 more people by the year 2030. Climate change will affect our residents sooner rather than later, I’m not sure where they are going to get water (it can’t be from Denver) or who will pay for it (we can guess the residents).
My Denver Housing Market Predictions
If you are looking for rental properties or want to buy a condo, I like downtown and the urban core of Downtown for good investments.
The long-term investment in Douglas County sounds terrible to me if they don’t have enough water. Keep your eye and ears open to what’s happening there and I’ll let you know what’s going on too.
We probably haven’t hit our peak yet on pricing in Denver. This is going to be neighborhoods specific so you’ll want to keep a close watch on your neighborhood. Message me if you want to know what is happening in your neighborhood and I’ll send you updates as often as you’d like.
National Level Interesting Tidbits
Millennials made up 43% of our home buyers the most of any generation!
Buyers are continuing to purchase in the suburbs and the small towns this tells me that downtown is the place to invest while the market is cool and not hot.
Lawmakers are looking to enact a rent control. Remember this is at a national level and something to watch.