Denver Metro Area Real Estate Market Review
Change is certainly in the air. The real estate market across the country has taken a huge shift since the Federal Reserve raised interest rates. As we watch mortgage interest rates rise base 6% the buyers market evolves. The competition is still present, and in truth it’s still a seller’s market, but the purchasing ferver seems to be subsiding a little bit. Let’s take a look at the effects of our summer real estate market.
Denver Metro Area
For the first time in nearly 2 years, the median sales price in the Denver Metro Area dipped lower than the previous month. We have been watching housing prices rise anywhere between 12%-20% up until May. Median sales price of homes in Denver are still 14% higher than last year, but it looks like the ever rising home value is slowing down with rising interest rates. Properties are moving through MLS quickly. The median time spent on the market is still only 4 days. Even with homes selling quickly, we’re starting to see some properties lingering longer than normal. Bidding wars are still prevalent, driving the close-to-list-price ratio at 105%, which means homes are selling an average of 5% over asking price. This has brought the median home price to $615,000 throughout the Denver Metro Area.
Properties in Boulder are still continuing to gain value faster than the rest of the surrounding metro area. And they are moving quickly, averaging 7 days on market. This is down from 24 days on market last year this time, which should tell you just how hot the Boulder real estate market is. So hot, in fact, that the close-to-list-price ratio is 107%! This has brought the median home value in Boulder to $875,000. One of the most startling stats in the Boulder real estate market is the median sales price of townhomes and condominiums. Since last year, Townhouses and condos have gone up 20%, bringing the price to $575,000. No matter what you’re trying to buy in Boulder, the prices are continuing to rise at a fast rate.
Longmont is seeing the effects of the market shift directly. Properties are starting to stay on MLS longer than other areas in the metro area, up to 19 days (3 more than last year this time). Median sales prices of homes had dropped since last month, down 5.6%. This brought the median home price to $595,000, which is still 9.5% higher than last year. The growth in home value does seem to be slowing down in Longmont faster than other metro areas. Even with homes lasting longer on MLS, they’re still receiving an average of 5% over asking price upon closing. Much like the rest of the Denver Metro Area, Longmont is still a seller’s market, even as things seem to cool off.
What does this mean for you as a buyer? Be ready to enter a competitive market. Everyone is securing their loans and, hopefully, their homes before interest rates rise too high. When you are ready to make offers, make sure to be competitive. If you haven’t secured your mortgage loan, be sure to do that sooner than later as interest rates do not appear to be lowering anytime soon. Get in touch with The Wise Team to work with the Best Realtors in Longmont. We’ll help you navigate this competitive market and get you settled into your new home as fast as you desire!