Inventory has nearly doubled in the Denver Metro Area since January 2022 - July Market Report

Average sales price continues to increase across the board for detached and attached homes in the Denver Metro Area. Compared to this time last year, detached homes' average sales price increased 11.5%, and 15.7% for attached homes.

We have 2x the inventory since January

Inventory is at its highest for the year, consistently seeing a 10-15% increase in the last five consecutive weeks. For buyers who struck out at the beginning of the year, we're seeing them return to the market more discerning. Though it is a much-needed uptick, we're still drastically undersupplied. As of this month, the Denver Area has 5% less inventory than we did this time last year, 36% less than in 2019, and 80% less than what is needed for a balanced market.

Though it may seem that there's a shift in the market favoring buyers, sellers are smartening up and listing their homes closer to the market value versus getting caught up in what their neighbors paid or sold for three months prior.

We're finding that buyers are willing to pay a little extra if homes are priced right and thus continuing to see homes end up in a multiple offer situation. According to DMAR's most recent market report, homes are closing at 103% despite seeing closed price-to-list drop by 2% this month.

There's a new game in town - the 2/1 Buydown

A market in transition requires us to think creatively, act more strategically, and communicate more proactively. As interest rates have increased, we're starting to see new creative ways offers are being submitted. The 2/1 buydown is the most popular solution to a price reduction.

Sellers are buying down the prospective buyer's interest rate through the lender by one or two percentage points, lowering the buyer's monthly mortgage payment. This has become popular across the Denver Metro Area as it is a great way to combat the shock of current interest rates.

If you are a buyer, it's time to take advantage of this inventory surge as the market will soon become just as competitive as before. If you're a seller, sit down with your Corcoran Perry & Co. agent to make sure you're pricing your home right!