DENVER (KDVR) — The Denver metro area housing market is cooling with the weather, having dodged the record prices seen last spring.
The Denver Metro Association of Realtors released its August report on Thursday, covering the real estate trends in the 11-county Denver metro area as of July. It’s still a seller’s market, but the lack of housing inventory and high interest rates are slowing the market.
Prices are dropping in the metro. In July, the median sales price for a detached single-family home was $650,000, which is down from the June price. Prices have been rolling down since May after rising since January.
“Would-be buyers and sellers are weighing the ‘golden handcuff’ dilemma,” the report reads. “They love their historically low interest rates on their home, but no longer love their home. To give some context, 91.8% of mortgages in the U.S. are under 6%, while 82.4% are under 5%. To showcase this current issue, new listings were down 15.33% month over month and down 24.76% from this time last year.”
This most likely means Denver metro home prices will stay at these levels through the end of the year.
Denver metro home prices usually peak in June or July, with few exceptions. There are years in which August or September trigger an uptick in home sales, but more typically prices either decline or stay flat until the market picks up again in January of the following year.