Front Range Real Estate Market Update, October 5, 2023

Let’s take a look at what happened in Metro Denver last month.

Inventory continues to rise as higher interest rates keep buyers on the sidelines. More homes for sale could help moderate price increases.

The number of homes for sale is rising, but it’s still lower than it was at this time last year. During September, inventory rose more than 11% from August, primarily due to homes sitting on the market rather than new listings. Demand is down because interest rates are at their highest level since 2000.

Since 1985, the metro area has averaged 15,453 homes for sale in September. With 7,629 active listings at the end of the month, we need almost double the number of homes on the market before we hit the average.

If inventory continues to rise, it will eventually put downward pressure on prices. 

As we mentioned last week, it’s become unaffordable for many people to purchase homes. Some people can’t get mortgage loans because their incomes aren’t high enough or they already have too much debt. Over time, rising incomes, falling home prices, and lower mortgage interest rates will likely make homes more affordable.

For now, prices are still up compared to where they were a year ago.

We’ll keep an eye on inventory because it’s one of the significant factors determining what happens to home prices.

Our local market in September:

Residential – Detached and Attached Homes

Average Closed Price: $692,460
+0.63% month-over-month
+3.13% year-over-year

Median Closed Price: $585,000
+0.69% month-over-month
+0.86% year-over-year

Active Listings at the End of the Month: 7,629
+11.24% month-over-month
-0.70% year-over-year

Closed Homes: 3,175
-20.88% month-over-month
-28.22% year-over-year

Average Days in MLS: 30
+15.38% month-over-month
+15.38% year-over-year