Michael RushReal Estate Broker, Keller Williams Realty DTC · Real Estate Broker at Keller Williams Realty DTC

Greater Denver Area Market Update - May 2023

12 May 2023 · 4 min

Watch on YouTube

3:45

In this video, Colorado real‑estate guide Mike Rush delivers a concise market briefing for the Greater Denver area. He reports that average single‑family home prices fell 7.2% and condo/townhome prices fell 5.2% year‑over‑year. Active listings rose 6.7% month‑over‑month but are still 9.6% lower than the prior month, while new listings are down 30% year‑over‑year yet up 7.2% month‑over‑month. Pending sales dropped 17.3% year‑over‑year but have risen for four straight months, up 9.1% from last month. The close‑to‑list price ratio has climbed to 100.3% for three consecutive months, indicating tighter pricing, and average days on market fell from a February peak of 47 days to 28 days. Rush explains the Fed’s recent 25‑basis‑point funds‑rate hike, expects slower future hikes, and anticipates mortgage rates easing, which should boost buyer demand. He reviews a strong jobs report, highlighting that leisure and hospitality employment surpassed pre‑COVID levels (now 16.25 million jobs). He cautions that jobs gains may soften as a recession looms. Finally, Rush advises sellers to list now—especially in June—for strong pricing, and tells buyers that opportunities for inspections, repairs, and seller concessions still exist but the window is narrowing. He closes with his contact number (720‑288‑0592) and an invitation to reach out for real‑estate assistance.

Chapters

Hey everybody, this is Mike Rush, your Colorado real estate guide, and today I'm going to be going over the new market statistics that were just released. We're also going to cover the Fed funds rate hike that happened last week on Wednesday, and we'll briefly get into the jobs report and what those numbers actually mean. Let's get right into it. Our average single-family home price went down by 7.2%, and our average condo and townhome price went down by 5.2%. Our supply of active listings went up by 6.7%, but it was actually down 9.6% when compared to last month. Our, our supply of new listings was down 30% year over year, but it was actually up 7.2% when compared month over month. Our pending sales and demand was down 17.3% year over year, but it's actually went up for the last 4 consecutive months and was up 9.1% compared to last month. Our percent of close price to list price actually increased month over month, and it has done so for the last 3 months, and it just hit 100.3%. So we're just seeing realtors and sellers pricing their homes a little bit more accurately, um, and we're starting to see that demand and competition come back up. Our average days in the MLS has been decreasing for the last several months as well. We hit a peak of 47 days back in February, and it's been decreasing month over month, and it's now at 28 days. The Fed met last Wednesday and increased the Fed funds rate by 25 basis points. This is to stop inflation and to slow the economy. Despite signs of a slowing economy, slowing inflation, and forecasts of a recession. And as we see the inflation numbers continue to decrease, I think the Fed slows down these rate increases, and we're going to see mortgage interest rates follow suit. So I think we're headed into a better interest rate scenario, which is only going to increase buyer demand. We had another strong jobs report that was released, at least it looked like it was. But the majority of these gains were in leisure and hospitality. And pre-COVID, we were at 16.2 million jobs in this sector. And after last month's gains, we just eclipsed 16.25 million. So we have now eclipsed that point where we were at in April of 2019. And I think our jobs reports are going to start to be less favorable as we enter into a recession. What does this mean? What's a good action plan for you? As I've been saying, um, right now is the time to list. I think you're going to get a great price for your home. Um, also in June, I think that's going to be really great timing to sell your house. I have a few listings that are coming up and I'm advising them to wait for that as well. Um, and then if you are looking to buy, there are still deals out there. You're still able to actually have your inspection, get some things fixed, possibly even get concessions from the seller. Um, to help towards your closing costs or rate buydown, things like that. Um, but I think that window is starting to close. So as always, you can buy and sell real estate in any market if you have a good real estate guide. So if you have anybody that could benefit from my services, I'd love to help them. My number is 720-288-0592. Thanks everybody, I'll catch you tomorrow.