Housing markets across the state slowed sharply in August, but some held out better than others in the face of higher interest rates and lower buyer demand, according to an analysis of Figures provided by the Colorado Association of Realtors.
The Denver Post examined August single-family home sales in Colorado’s 12 most populous counties, which include Denver’s six core counties — Adams, Arapahoe, Broomfield, Denver, Douglas and Jefferson — as well as counties that cover the other state metros. Districts – El Paso, Larimer Weld, Boulder, Mesa and Pueblo.
The largest decline in the number of single-family homes sold in August 2022 versus August 2021 occurred in Denver County, down 32.2%, followed by Weld County, down 31%, and El Paso County, down 30.2%. The least sales declines were in Pueblo County, down 16.3%, and Mesa County, down 18%.
Inventories of homes available for sale rose sharply year-over-year in most counties and more than doubled in two counties — El Paso, up 117.6%, and Broomfield, up 112.1%.
“What The difference a few months makes. “The shift is here, and it’s moving fast,” Colorado Springs-area realtor Patrick Muldoon said in comments included in the report. “Buyers have most of the power now, but they are either impatient or uninterested. After all, why would they be? Every day is a news cycle of bad economic news ranging from stocks, inflation, layoffs and housing data.”
Denver County was an anomaly. It had the smallest increase in available single-family listings at the end of August, up 19.4%, and recorded a 22% decrease in the inventory of available homes and apartments, reversing the trend elsewhere. However, the average price gain for single-family homes sold, up 4.5% year-over-year, was more tepid than any other non-pueblo market, with prices up 3.7%. Prices of townhomes and condos rose just 1.9% in Denver year-over-year.
“The sky does not fall, there is not some explosive change in the market as the market itself is always on the move, always in flux and is as reliable as the 1973 Ford Pinto. The only thing that can be counted on is the change and the fact that the values, throughout the year , at a market level, is always increasing with wisdom from a historical perspective” report from what Muldoon did.
interest rates Rise Like the Fed It seeks to combat inflation and this has put many buyers off. The 30-year mortgage rate averaged 6% this week, double last year’s rate and the highest in the United States since 2008, according to the Mortgage Bankers Association.
However, new listings have also decreased, which works against the glut of inventory that can drive prices down. Jeffco reported the largest drop in new listings, 28%, followed by Larimer County with 18.2%. Sellers posted a close to the same pace last year in Broomfield and Adams counties, while Weld County saw an 8% increase in new listings.
In every county studied, premiums that were being charged above list prices disappeared this spring. Sellers in Weld County were closest to getting full list price at 99.8%, followed by El Paso County with 99.7%. Sellers are discounting more in Pueblo County, where sale prices are 98.4% of the list price on average and in Mesa County it’s 98.5% of the list price.
Listings in these two counties also spend the most time in the market — an average of 61 days in Mesa County and 49 days in Pueblo County, although the pueblo average is down from 62 days the previous year. Boulder, Larimer, and Weld are the other counties where listings take an average of a month or more to contract.
The fastest homes are being claimed in El Paso County, at 17 days on the market. Denver, Jefferson, and Broomfield County rosters are subject to an average contract of 18 days.