Metro Denver/Boulder- July 2022

Financial trends play a major part in determining the standards lenders will apply in approving mortgage
loans. However, other factors come into play, though to a lesser degree. Length of employment, savings
history, debt to income ratio, age of debt, past repayment history, current income as well as income
growth history all combine in the approval process along with the value of the property to be financed.
Mortgage qualifying requirements are not a fixed element, so blanket statements of affordability in the
housing industry are also not a given. Home prices and mortgage interest rates weigh heavily in
determining whether securing a mortgage will be easy or difficult. However, these other factors do
weigh in the decision, and these elements a buyer has some control over.
We’ve spoken many times in past Insights about shifts taking place, shifts we see coming and shifts that
may occur if A or B happens in the economic climate. Supply chain concerns, a more recent
development, are affecting affordability, employment, and personal income, but to what extent that will
shape lender requirements has not fully emerged yet.
Almost 57% of homes sold in the first two quarters of this year were considered affordable, thanks to
rises in personal income over last year. This made purchasing a new home a little easier for our Front
Range Colorado residents.
Even with the recent price and interest rate rises, of the 13,774 homes available for sale, 5,090 sold and
closed during the month of June. These sales took place after an average of 9.5 Days on the Market (till
an offer), and closing at an average sale price of $657,304.
As buyers continue the trend of departing denser populated areas in favor of suburbs, year-over-year
averages still see increases, which hopefully inspires sellers to enter the market in stronger numbers.
June 2021 average Days on Market were 10.5, with an average sale price of $553,039 for the 6,666 sold
and closed of the 10,952 that were on the market. Now that daily commutes are less of a factor in
home-buying decisions, expect to see the shift away from inner-city and crowded suburbs remain on an
upward trajectory.
Attention to those financial considerations is still the best plan to bring home purchase dreams into
focus. A debt-to-income ratio of about 28% settles you in a comfortable position of qualifying approval
for a mortgage at the lowest available interest rates. There are considerations for first-time buyers and
rates for those with less than stellar credit scores. Budgeting for those home buying aspirations is
specific as every personal budget differs. Contact me with any questions you might have about the
market today. I can help you begin this most exciting journey of home ownership!

Detached Single FamilyYear to Year
June ’21June ’22% change
Active Listings2,1374,684119.19%
New Listings5,6575,6740.30%
Closed Price Median600,000673,87312.31%
Closed Price Average727,079810,41511.46%
Days on Market81025.00%
Months Supply of Inventory1.652.8975.15%
Average Percent of Original List Price105.89%102.96%-2.77%
Sales Volume3,423,816,8722,896,424,070-15.40%
Month to Month
May ’22June ’22% change
Active Listings2,8284,68465.63%
New Listings4,9665,67414.26%
Closed Price Median670,106673,8730.56%
Closed Price Average805,508810,4150.61%
Days on Market91011.11%
Months Supply of Inventory2.022.8943.07%
Average Percent of Original List Price105.34%102.96%-2.26%
Sales Volume3,102,817,1352,896,424,070-6.65%
AttachedYear to Year
June ’21June ’22% change
Active Listings9851,37339.39%
New Listings2,1732,043-5.98%
Closed Price Median435,695430,000-1.31%
Closed Price Average379,000504,19333.03%
Days on Market139-30.77%
Months Supply of Inventory1.612.25%-98.60%
Average Percent of Original List Price104.7103.36%-99.01%
Sales Volume764,356,588764,356,5880.00%
Month to Month
May’22June ’22% change
Active Listings8241,37366.63%
New Listings1,8442,04310.79%
Closed Price Median430,000430,0000.00%
Closed Price Average494,419504,1931.98%
Days on Market990.00%
Months Supply of Inventory1.67%2.25%34.73%
Average Percent of Original List Price105.28%103.36%-1.82%
Sales Volume787,609,860764,356,588-2.95%

Join The Discussion

Compare listings