Denver Metro Real Estate Market Review

November 2022

What a year this has been. 2022’s real estate market started in a frenzy for sellers and seems to be finishing with a flat tire. The past two years could be described as a seller’s market, but the current market mood feels very much shifted towards a buyer’s advantage. The unfortunate caveat is that interest rates are still high, with the possibility of going higher. Couple that with record breaking home value prices and the buyer’s market looks like a bit of a challenge still. Don’t get discouraged, whether you’re a seller or buyer. There are still gems and great possibilities in the Denver real estate market. Let’s take a look at some of the numbers as we draw to the end of the year.

Denver Metro Area

We finally have inventory again! It’s been a crazy couple of years, with inventory at record lows. As interest rates approached 7%, inventory began to rise again. We’re now sitting at a much healthier MLS, with options across the metro area in every bracket. With the increase in inventory, the close-to-list-price ratio has dropped to 98% – meaning on average houses are closing lower than their list price. This is the buyer’s advantage. With more inventory, high home values, and interest rates around 7% homes are sitting on the market almost twice as long as last year, now an average of 28 days! Average home values have stalled in their rise over the past two years. Where we saw year-over-year growths of 20-25% in some areas, we’re now seeing a metro average rising home value of just about 6%. This has brought the median home value to $566,000 across the Denver metro area.

Boulder County

I feel like we say this every time, but Boulder County continues to be a different animal than the rest of the larger Denver metro area real estate market. Inventory is following the metro area, increasing and staying on MLS longer than previous months. Homes in Boulder are staying on the market for up to 48 days now! This allows for negotiations to take place, and has brought the close-to-list-price ratio to 97% (down from 104%). If you’re looking to move to Boulder, be aware that the median sales price of single family homes is around $860,000 and the median price of town-homes is around $515,000.

Longmont

Longmont is resisting the greater market trends a little bit. This city is quite desirable, as we all know very well. The average home value is still rising around 6% year-over-year. This is down from 17-20% from early in 2022. The median home value has risen to $535,000 for a single-family home in Longmont. At this price and with the interest rates where they are, homes in Longmont are moving faster than Boulder, only staying on MLS for about 35 days. Even with the longer time on market, there are fewer homes available in Longmont than would be expected. In fact, Longmont is one of the few cities and towns in the Front Range that has fewer homes on MLS this year than last year! Now if that doesn’t tell you how desirable Longmont is, then maybe the Close-To-List-Price ratio will help reveal that insight. Right now, the Close-To-List-Price ratio is 100%, meaning houses are selling/closing at their asking price. This is unlike the rest of the metro area, which is seeing price cuts almost across the board.

What can we say about the Real Estate Market as we come to the end of 2022? It’s transitioning fast from a seller’s market to a buyer’s market. No matter what side of the real estate market you’re on, patience is essential. It’s taking longer to secure loans, longer to finalize closings, and potentially longer to negotiate with the other parties involved. Most importantly though, make sure you have the right realtors on your side. That’s where The Wise Team comes in. We’re experts in the Longmont and Denver Metro Area real estate market, and we’re ready to get you into your dream home. Get in touch today, and we can start the journey together!