DENVER (KDVR) — Denver metro home prices are cooling. The metro market followed a national pattern through the first part of 2022.
Prices skyrocketed as buyers competed with each other for a limited supply of homes in major metro areas, particularly in the outdoorsy Western U.S. Colorado, Utah, Idaho and Montana were at the top of the nation’s list of white-hot markets. These states are now seeing the biggest decreases in their formerly inflated values.
As the U.S. Federal Reserve continued to raise interest rates, homebuyers found themselves priced out of the market and unable to continue the frenzy. In the Denver metro, prices slid from a high last April consistently through December, according to the January report from the Denver Metro Association of Realtors.
In December, the median price for a single family detached home was $600,000 – about $80,000 less than in April and matching the median prices in December 2021 and January 2022.
Buyers are not falling over each other to snap up available homes, either. Homes are spending about twice as much time in the MLS than they were a year ago. There were 12% fewer homes sold than the same month last year.
Sellers have less leverage and are having to concede they can’t command the kind of prices seen earlier in the year. Homes with a price reduction were in the MLS half as long as the homes without any reduction.