The September 2022 market stats are now out, and our roundtable is back to discuss the data and what they’re seeing in the Colorado market.
- Listen to the podcast “#420: Believe It or Not: Now Is a Good Time to Be a Buyer” Denver Real Estate Investing Podcast
- Watch the YouTube video (at the bottom).
- Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.
In Denver, inventory and sales prices are up while closed units are down. Despite the increase in inventory, we’re only halfway to a balanced market. There were 4100 closed transactions in September, which is 1500 fewer than this time last year. However, the overall average is between 4000-6000, so the Denver metro area is right where it should be for this time of the year and we’re starting to see seasonality again.
Meanwhile, Colorado Springs saw month over month home prices and sales drop slightly. While the percentages may look dramatic, keep in mind that the base numbers are so small that any slight fluctuation will have a greater percentage impact.
While we don’t have stats for Pueblo, we have reason to believe that the area is withstanding the high interest rates. Investor friendly realtor Leah Keeling recently helped a client purchase a duplex there with 25% down and a 7.25% interest rate. The property still cash flows $300 per month.
To hear the full discussion with Envision Advisors agents Jenny Bayless and Preston Newberry, lenders Joe Massey of Castle & Cooke Mortgage, and Travis Sperr of Renovo Financial, and me, listen to the podcast or watch the YouTube video.
Denver Market Stats and Observations
- Up 94% from this time last year (which was the lowest level for September in 30+ years)
- Up 11% from last month (that’s probably close to seasonal trend)
- Homes up more than condos
- The 7700 active properties is about half of the long term average this time of year (15,700)
- Down 28% from this month last year
- Off 8% from last month (again, in the ballpark of normal seasonal slowdown)
- Homes and condos about the same
- Last year was a record year, so these drops are not as dramatic relative longer-term trend
- Comparing YTD sold count, we’re down about 7% from 2018, which was a good year
- Pending count off 28% from same month last year
- Off 15% from prior month (that’s probably a bit more than we should expect for a “normal” seasonal drop
- Up 8% from last year
- Up 2% from last month
- Condos up a little more the homes
- It’s taking more price reductions to attract interest; Denver is among the large cities with the most reductions
- The nation-wide increase in home prices and rents are large contributors to the overall inflation index
Days on Market (DOM)
- Taking about double the time from last year (from 13 to 26 days)
- DOM increased from 20 (Aug) to 28 (Sept)
- 0.6% discount this Sept vs. 1.7% premium last Sept.
Colorado Springs Market Stats and Observations
- Homes: Up 127% from this month last year
- Condos: Up 66% from this time last year
- Inventory was up slightly from prior month
Number of Units Sold
- Just like Denver, the sales count was off 26% from this time last year (homes) and -18% (condos)
- Volumes were off slightly for homes (normal seasonal pattern) and up for condos (unusual for this time of year)
- YTD, we’re down 9% from the record sales year
- Homes up 5% from this time last year
- Condos up 8%
- YTD we’re up 11%
Months of Inventory
- 2.1 for homes (up from 0.7)
- 0.9 for condos (up from 0.5)
- Still a strong seller’s market; just not as crazy strong as it was last year
Note: The above Executive Summary is from Lon Welsh of Your Castle Real Estate.
Denver Housing Trends
Colorado Springs Housing Trends
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Believe It or Not: Now Is a Good Time to Be a Buyer
Podcast: Play in new window | Download (Duration: 46:16 — 53.0MB)
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Podcast (colorado-springs-real-estate-investing-podcast): Play in new window | Download (Duration: 46:20 — 53.0MB)
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