Is it hot out there?
We know it’s been a scorching summer in some parts of the country, while Colorado has remained relatively cool. But what about the temperature of Colorado’s real estate markets? The Realtor.com Market Hotness Index indicates the degree to which a given area experiences fast moving supply and high demand. Here are how Colorado’s major cities land on the hotness gauge this month:
While the nation’s median list price declined compared to the same time last year for the second month in a row, things looked slightly better in the greater Denver metro area. Median price in July 2023 came in at $675,000, a respectable 3.8% increase year over year, thanks in part to the classic effects of supply and demand. Active listing inventory was down almost 11% compared to the same period last year, and new listings were down just under 25%. The West as a region saw declines over 33%.
The typical home spent 31 days on the market this July, which is 8 days longer than the same period last year, but this is still less time on market than we experienced pre-pandemic, which indicates the housing market in the Boulder/Denver metro is still relatively fast moving.
Price reductions are also an indicator of the mismatch between supply and demand. 22.7% of active listings in July saw price reductions compared to the national average of 15.5%. For the Denver metro, this is a 7.7% decrease in price reduced listings compared to the same month last year, which shows the disconnect between buyer and seller expectations narrowed. If this continues, we may soon see a more balanced market, and we can all stay comfortably “warm” as fall and winter approach.
Source: Realtor.com – July 2023 Monthly Housing Market Trends Report, Market Hotness Index