As we move further into Spring and closer to Summer, sellers continue to be eager to get their homes onto the market. The rise in prices continues as well. Per tradition, the market is heating up just like the temperatures. This bodes well for buyers who are looking to step into the market this summer. The one thing to consider for all parties in the market is interest rates, the largest factor at this point impacting supply and demand. Our team has the May 2022 market update.
Inventory is on the rise this month, showing promise for buyers. As inventory has been increasing, prices have slowly been inching up as well. The average price of a single-family detached home in Denver Metro is $825,073, representing a 3.93 percent increase from last month.
The relationship between closed sales and month-end active inventory ultimately impacts the supply and demand of the market as well as many other statistics including average sales price. The most significant factor influencing the supply and demand of this market is interest rates.
While Denver Metro is still relatively low in inventory, the word “historic” does not apply anymore. There were 610 fewer properties on the market last year compared to today. The market usually sees an 8.59 percent increase in month-over-month inventory. This month, it saw a 44.26 percent increase.
In the Luxury Market, inventory is also on the rise, with a 57.65 percent increase in new listings from this time last year. However, as a result of inflation, more homes will cross the barrier into the Luxury Market due to list price or bidding wars that end 20 percent or more over the original ask price.
“The spring selling season is off to a great stat and it feels as though more inventory is becoming available than even the data represents,” said Libby Levinson-Katz, DMAR Market Trends Committee member and Metro Denver Realtor®. “My partner and I have had more listings this year than we’ve ever had which feels like a slight change in the marketplace with more Denverites opting to either sell investment properties, move out of state or jump into this crazed market. For perspective, the Luxury Market year-to-date has 2,350 new listings with 1,793 closed. Back in 2018, there were 1,283 new listings with 649 closed properties.
The close-price-to-list-price ratio increased slightly this month to 108.45 percent, just 0.39 percent up from last month. This data point was 102.62 percent this time last year, meaning there has been a 5.68 percent rise in the last year. The price per square foot total also jumped up 16.27 percent from last year to $386 per square foot. With this increase, now is a better time than ever to sell your home.
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Read the full May 2022 market update from DMAR at: