Front Range Real Estate Market Update, November 18, 2022

In October 2019, there were 11,896 homes for sale in the metro area. Last month, there were 8,327. Although inventory has risen substantially since the beginning of the year, we’re still below pre-pandemic levels. Since 1985, the average number of active listings during October has been 14,957, so we are still well below average.

Last month, there were 4,135 new listings. In October 2019, there were 35% more new listings – 5,580. So, while we have more inventory, it’s not really due to more new listings coming on the market. Instead, it’s because homes stay on the market longer before they sell. 

Although home prices have moved downward since their peak in April, this lack of new listings coming on the market has tempered the decrease in prices. In other words, the housing supply is still historically low, keeping prices from decreasing further than they have in Metro Denver. Higher interest rates, economic uncertainty, and inflation have all dampened demand, but demand is still significant enough to keep prices from falling even further.

A recent survey of real estate agents around the country shows that buyers think home prices will crash, which is unlikely if inventory stays low. Sellers are stuck six or nine months ago with unrealistic expectations of bidding wars, record sales prices and unreasonably fast sales.

Zillow’s senior economist, Nicole Bachaud, says, “Buyers are still out there and willing to buy when they find the right home at the right price, which will provide a floor for the price declines we are currently seeing. But sellers need to do things right to attract the attention of these buyers — pricing their home competitively and making their listing attractive to online home shoppers. Especially in a market that’s quickly changing like today’s, working with an experienced agent who knows the local market is valuable.”