Denver Metro Market Update February for 2022

A home buyer new to the Colorado real estate market, could not be faulted if their first impression was that renting would be cheaper than buying. Home prices have certainly risen over the last few years. However, that acknowledged, depending on a few factors like employment stability, owning your home remains the most viable and affordable long-term choice. The number one reason? All financial considerations being taken into account, owning uses a less percentage of your wages than renting!

Sales have slowed down in the last month as far as home purchases go, (although this is a great time to pick up some terrific deals on patio furniture and grills for next year’s BBQ in your new backyard!) The combination of the winter season which is almost always the slowest of the year, slowly rising mortgage interest rates and otherworldly concerns are certainly all playing a role in the sales statistics we see in the Front Range from this past February.

Of the 1226 homes available for potential buyers to choose from, 3202 were found and closed on their new abode. Average Days on Market was 15 as compared to February 2021 which ended the month at 35. You can see those price differences when comparing the February 2021 average of $635,261 for detached and 399,700 for attached, to February 2022’s average of $739,950 for detached and 461,778 for attached.

We’ve talked about inventory concerns for quite some time now, and you can see why when you compare this year’s 6017 available homes in February to 2019 (pre-pandemic) available inventory of 1226. That 79% less inventory for both detached and attached homes.

Change is inevitable, and as happens about every 5 to 8 months in the real estate market, we are seeing shifts and changes. Those shifts and changes are not just about inventory and mortgage interest rates though. Many of the changes we are currently seeing are driven by the emerging mindset of buyer and seller which appears to be going through a metamorphosis of sorts.

We all know and appreciate that home shopping can be a very challenging undertaking in the very best of circumstances. The last two years have been anything but that, yet the seller and buyer have persevered. In spite of high-pressure influences outside of the usual situation when buying or selling a home, or perhaps even because of those influences, sellers are overcoming their fears that led to a reluctance to list properties, and inventory levels are beginning to bounce back. That is expected to continue and improve over the remainder of 2022 and into 2023.

Buyers have faced stiff competition, disappointments, and even heartbreak at times as they’ve made the journey through a purchase. That has definitely affected the ways determined buyers are approaching their purchase offers moving forward. It will take a few months for all of the shifts to shake out so we can describe them with more accuracy, but be assured that prospective buyers have not lost sight of the value of homeownership!

Every market area can be vastly different and directly influences prices and terms in sales. Thanks to work-from-home arrangements that are remaining in place for a good number of the workforce, we are seeing a greater emphasis on spaces that can be set aside not just for a home office, but for homeschooling. Outdoor living spaces are taking an even more central role, not just in home life but in entertaining and gathering with friends and family.

I can provide specific neighborhood data to help you make your next, best move. With offices and REALTORS® available all across the Colorado front range, I have the local resources to get you moving in the right direction. Contact me today!

For insight into the North Metro Denver Real Estate Counties click here!