DENVER (KDVR) — The winter could end up with sticker shock for Colorado’s already-beleaguered homebuyers.
Single-family home prices in Colorado have dipped from their summer highs but remain higher than at any point before then.
According to the Colorado Association of Realtors, the median price for a single-family home in the Denver metro areas is $565,000. That’s $20,000 less than June, but higher than any other month prior to June.
Buyers could have a hard time swallowing the price. If trends continue, housing supply will only tighten over the winter and drive prices up.
National housing inventory is lower now than at any point since before last year’s third COVID wave. With 867,000 homes available in U.S., inventory is half what it was on average pre-COVID.
In Colorado, the trend is even more pronounced.
There were 9,353 homes for sale statewide in Aug. 2021.
Throughout the year, there were 7,764 homes for sale every month on average. In the world’s final COVID-free year, 2019, Colorado had 15,650 homes for sale on average – more than double the 2021 monthly amount.
It will get worse before it gets better, if history is any sign.
Colorado’s housing market moves in waves. Typically, housing inventory peaks in July or August and hits a low point in December or January.
This winter, housing stock will start from its lowest point ever to begin that downward swoop.
Home inventory drops about 40% from July to January on average in the last six years. If that normal seasonal dip happens this winter, Colorado’s housing stock will drop to 5,992 – lower even than each of the winter month of 2021 when housing supply scarcity set national records.