April has historically been a promising month for Denver’s housing market, but this year, it’s been a bit stagnant.
The average price for homes last month was $682,061, while the median close price was $580,000, according to the latest monthly report from the Denver Metro Association of Realtors. Both the average and median home prices increased month-over-month as prices have been trending upward since February. Yet prices are lower than the average $722,484 and the median of $617,000 from last April.
There were 4,620 active listings at the end of April, a 2.3% increase from March, which is much lower than the historic average increase of inventory of 10.41% from March to April, and lower than the average number of 14,296 active listings historically seen in April (from 1985 to 2022). However, this April’s inventory is still a 44.19% increase in inventory year-over-year.
While there are more active listings in the market right now, the 4,758 new listings that hit the market last month are fewer than the boost in inventory seen last April, when 6,890 new listings came on board.
Meanwhile, fewer homes closed in April than they did in March or the prior year. Buyers purchased 3,701 homes in April, while they purchased 4,019 homes in March and 5,277 homes in April 2022.
Homes are staying on the market 262.5% longer than they were a year ago, but 21.6% less than in March, at an average of 29 days on the MLS (Multiple Listing Services).
“Traditionally, at this time in the spring selling season, we see an increase in both active listings at month-end as well as new listings,” DMAR Market Trends Committee and Denver Realtor Libby Levinson-Katz said. “The sluggish movement in these categories leaves a lot to be desired.”
The metro area’s recent property valuation assessments have resulted in most homeowners seeing double-digit increases in their property tax increases, something that Colorado lawmakers are taking an active role in addressing.
“The inventory decline in an already tight market raises some concern as to what the rest of the year has in store for the Denver market. Unfortunately, affordability took a hit with the rollout of tax assessments the last week of April, reflecting sizable increases to property tax bills across the state…Higher tax bills coupled with increased interest rates are going to have a significant impact on buyers’ ability to purchase throughout the state, specifically the Denver Metro area,” Levinson-Katz said.
Sales volume for homes in a typically hot real estate month has also declined, from $3.8 billion a year ago to $2.67 billion in March and $2.5 billion in April. The bidding wars of last spring have also dissipated, as buyers are now closing at 100.21% of the list price, compared to the 106.87% of the list price they were paying last year.
In the luxury market — or properties selling for $1 million or more, new listings were down 4.38% and 20.35% from March and April 2022 respectively. Sales volume in that category is also down by 38.15% from last April, when $1.1 billion sold, according to the report. The price per square foot for luxury homes was $382 in April, down from $386 in March and $398 last April, according to DMAR’s report.
DMAR, an organization with more than 8,000 real estate members, sources its data from Colorado’s MLS REcolorado.