Higher interest rates and the upcoming holiday season combined to limit November home sales in the Denver metro. The number of available homes available dropped, and the number of days on the market continues to increase.
Those trends echoed what’s happening nationally, with the National Association of Realtors reporting the number of pending home sales declined again in October for the fifth month.
According to Denver Metro Area Realtor data, listings for single-family homes in November dropped to 4,572, a 16.02 percent decrease from October.
Although more homes were available than in November 2021, the market shows the typical end-of-the-year inventory decrease as homeowners wait to list until the New Year or remove properties during the holiday season.
Average days for sale increased 20 percent month-over-month to 36 days, a 140 percent increase from November year.
The average sales price dipped slightly from $736,675 in October to $732,437 in November. Sales prices still show an increase of 4.17 percent from November 2021, when the average price was $703,119.
“Without a doubt, the Denver Metro housing market is changing, but the question on everyone’s mind is how long this change will last and what to expect next year,” says Libby Levinson-Katz, a Denver realtor who chairs the association’s market trends committee. She predicts higher interest rates and inventory shortages will continue to challenge buyers and sellers in 2023.
The November report shows that the number of homes listed in the luxury category (more than $1 million) reported a significant slowdown as the number of new listings and the sales prices decreased.
“The Luxury Market statistics are no real surprise as many people travel during November and interest in real estate temporarily wanes,” says Colleen Covell, a market trends committee member.
“We need to ensure our sellers understand the ‘return-to-normal’ in our market and set their expectations that three to four weeks before going under contract is OK.”
In November, the 2012 Colorado Home of the Year was the top luxury property sold in the 11-county Denver metro area. The 11,147-square-foot home at the Castle Pines Golf Club in Castle Rock sold for $6.3 million after initially being listed for $7 million in October.
The news and editorial staffs of The Denver Post had no role in this post’s preparation.
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