The number of homes and condos for sale in metro Denver increased by almost two-thirds from May to June and the number of properties available on the market almost doubled compared to a year ago, according to the latest market trend report from the Denver Metro Association of Realtors.
This may sound like good news to potential buyers looking to buy now, but rising interest rates push up house priceswhich would explain why there is more demand now compared to previous months, according to Andrew Abrams, chairman of the DMAR Market Trends Committee.
In this 360 deep report, we will look at:
- What the Latest Numbers Show for the Denver Real Estate Market
- Why renters don’t fare much better when it comes to finding a home
- What the latest report means for buyers and sellers
- The impact of mortgage rates on how much you pay month-to-month
- What experts warn if you’re thinking of moving soon
Let’s break down the numbers 🏡
The number of active listings in June for single-family homes and condominiums was 6,057, a 65.85% increase from June.
The price of a single family home in Metro Denver also continues to rise, but not by much, which I guess is good news? In June, the median home price was $810,415 – an increase of 0.58% compared to the previous month and an increase of 12.31% year-on-year.
Condo buyers are no better off on this front. The median price of a condo in June was $430,000which saw no difference from the previous month, but there was a 13.46% increase from 2021.
On average, ads are only on the market for about 10 days, according to the report.
Click here to see a full-screen interactive version of the table below.
Denver renters are also seeing these prices go up 📈
ApartmentList reports Denver renters are paying 1.5% more than last month, with median rents for a one-bedroom apartment are $1,427. Those who rent a two-bedroom apartment in Denver pay about $300 more per month, an increase of 11.5% over last year.
June marks the fifth consecutive month the city has seen rent increases after a decline in January, according to the report.
That may seem like a lot, but compared to the state as a whole as well as the rest of the country, it doesn’t seem too wrong.
Colorado’s rent growth over the past year was 12.5% this June compared to a year ago, with the United States up 14.1% year-over-year.
Even better news? Those who live in Denver haven’t seen the price hikes the folks at Arvada are experiencing. Year over year, the city of Arvada saw a 16.2% increasewith one bedroom listed for the median price of $1,445.
For tenants looking to move, you might want to think twice if your idyllic new home is Parker. Rents here are the most expensive in metro Denver, with a median two-bedroom apartment costing $2,217. Rents there increased by 2.1% between May and June and by 13.2% year-on-year.
What does all of this mean for sellers and buyers? 🤔
“I think we’ll continue to see more inventory, slowing prices, higher days in MLS and more adjustments with that,” Abrams told Denver7, adding buyers have more bargaining power right now with the way things are going.
For those who sell in this market?
“As a seller, you have to reset those expectations because you’re not aiming for the moon anymore. in addition to the price you can get, you have to come back to reality a bit,” said Abrams.
What impact do mortgage rates have? 💸
Denver7 did the math and in January, a 30-year rate from Freddie Mac was 3.22%. It was so low that for a $700,000 loan, your monthly payment would be around $3,000, not including taxes, fees and insurance.
At the end of June, however, a 30-year Freddie Mac loan was around 5.7%. So now that same $700,000 loan will cost you over $4,000 a month.
In fact, to get a $3,000 a month mortgage, you would now have to find a house for $525,000, which is $175,000 less than what you could have bought six months ago, all because of these rising interest rates.
Moving? Experts warn against moving brokers ⚠️
If you’re planning on moving this summer, experts say it’s not enough to just go online and hire the moving company that gives you the best quote.
“There are a lot of brokers out there who don’t employ movers, they don’t own trucks, they don’t own warehouses, and what they do is they secure your job, then they try to find a mover like us who will cover the job on their behalf,” said Chuck Kuhn, CEO of JK Moving Services. “I strongly recommend that clients work directly with moving and storage companies that own their own fleet and have their own teams.”
Kuhn says, if possible, visit the mover’s office, make sure the trucks in the warehouse and office appear to be in good condition, and that it’s a legitimate moving company.
Having trouble talking to your landlord or paying your rent?
Colorado Housing Connects offers a free mediation service in Denver and Adams counties. You can learn more about coloradohousingconnects.org or by calling 1-844-926-6632.
If you want to see our full 360 degree reportclick on the image below.
Editor’s note: Denver7 360 | In Depth explores several aspects of the topics that matter most to Coloradans, bringing different perspectives so you can make up your own mind about the issues. To comment on this story or other 360 In-Depth stories, email us at [email protected] or use this form. See more 360 | In-depth stories here.