The Colorado housing market is slowing down in 2022. Houses for sale lasted somewhat longer in June than in May. June saw fewer house sales compared to the previous month and June of last year. However, sellers continue to list additional homes for sale, as if they are worried buyers will vanish. The good thing for the Colorado housing market is that home prices are not going down in 2022 and 2023.
The average home price in Colorado is $722,014. Not only the Denver metro area but the entire Colorado housing market is a hotspot to buy and sell real estate. Due to the surge in demand for homes, home prices have increased in most regions throughout the state. It has increased the difficulty of finding a home to call your home.
There are more buyers than there are houses, resulting in a seller's market that continues to drive prices up. According to the Colorado Association of Realtors, the median Colorado single-family home price topped $500k for the first time in April of last year and has now reached $599,000.
- In June 2022, the median price in the Colorado housing market (statewide) was $589,000, up +11.1% year-over-year.
- The Average Sales Price in Colorado was $722,014, up 7.6% year-over-year.
- Percent of List Price Received has dropped to 102.0%.
- Days on Market Until Sale = 23, down 0%.
- Closed sales of single-family homes were up by 17.2% from last year.
- Months supply was up 54.5% to 1.7 months, which is still a seller's market.
- Inventory of Active Listings increased by 42.8% year-over-year.
- New Listings increased by 2.7% year-over-year, which shows an increase in seller optimism in June 2022.
Even Colorado Springs is in the strongest seller's market that we have ever seen. Low inventory and ever-soaring prices continue to impact affordability. In June 2022, the median list price of homes in Colorado Springs, CO was $465K, trending up 13.4% year-over-year, according to Realtor.com. The median listing price per square foot was $216.
The median sale price was $457,000. Homes in Colorado Springs, CO sold for approximately 2.12% above the asking price on average. The sale-to-List Price Ratio was 102.12%. On average, homes in Colorado Springs, CO sell after 31 days on the market. The trend for median days on market in Colorado Springs, CO has gone down since last month, and slightly down since last year.
Colorado Housing Market Predictions 2022 and 2023
Colorado is still a seller's real estate market with a positive price forecast for the next twelve months. The market remains anything but average. Despite the increase in the number of properties for sale this year, there is still a lack of homes on the Colorado housing market. Thus, current conditions continue to favor sellers because there are too few homes available for the number of buyers in the market, which gives them all the leverage.
In that situation, buyers will do what they can to compete for the limited number of homes for sale, and prices will rise. The median price in the Colorado home market (statewide) in June 2022 was $589,000, an increase of 11.1 percent year on year. At the same time, the average home price was $722,014, an increase of 7.6 percent year on year.
Colorado has a track record of being one of the best long-term real estate investments in the U.S. Let us look at the home price appreciation trends recorded by Zillow over the past few years. Colorado's strong economy gives buyers the ability to spend more on housing, consequently increasing real estate prices.
Since the last decade (August 2012), Colorado home values have appreciated by nearly 155% — Zillow Home Value Index. ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. The typical home value of homes in the Colorado metro is currently $591,189. It indicates that 50 percent of all housing stock in the area is worth more than $591,189 and 50 percent is worth less (adjusting for seasonal fluctuations).
In June 2021, the typical value of homes in Colorado was around $488,000. Home values have gone up 21.0% since then. Colorado is currently the seller's real estate market which means that demand is exceeding the supply, giving sellers an advantage over buyers in price negotiations. There are fewer homes for sale than there are active buyers in the marketplace.
What's Next for the Colorado Housing Market?
Housing market forecasters predict that home prices will keep rising in Colorado. As a buyer, the longer you wait to purchase a property, the more it will cost you due to continuing home price rise. It also provides you piece of mind that your home's worth will likely increase after you purchase it. This makes it historically a wise investment and an effective inflation hedge. As a seller, price appreciation is great news for your home's worth. Again, rely on a professional to determine the optimal circumstances for selling your home and purchasing your new home.
The number of available homes for sale is expected to increase in Colorado. As a buyer, having more housing inventory for sale on the market is excellent news. Remember that the housing supply is still limited, so be prepared to act quickly and make your best offer. If you're a home seller, you should prepare for more competition as more homeowners enter the housing market.
Inflationary pressures will likely continue to influence mortgage rates. As a buyer, you should consult real estate professionals, including your lender, to discover how rising mortgage rates affect your purchasing power. If you are prepared, it may make sense to purchase now before the price increases. As a seller, rising mortgage rates motivate some homeowners to move up as quickly as possible.
In June, the median sales price in Northern Colorado was $560,000 while the weeks of inventory were 5.5. The median sales price in Central Colorado was $669,000 while the weeks of inventory was 12, according to June 2022 stats released by REcolorado.
Northern Colorado Housing Market Trends 2022
- Homes Closed = 714
- Median Closed Price = $560,000
- New Listings = 1009
- Pending Listings = 625
- Weeks of Inventory = 5.5
- Median Days in MLS = 5
Central Colorado Housing Market Trends 2022
- Homes Closed = 54
- Median Closed Price = $669,000
- New Listings = 96
- Pending Listings = 59
- Weeks of Inventory = 12
- Median Days in MLS = 6
References:
- https://www.zillow.com/co/home-values/
- https://www.recolorado.com/buy-sell/market-trends/
- https://coloradorealtors.com/market-trends/regional-and-statewide-statistics/
