Low inventory, high interest rates continue to push home prices up

Limited inventory and higher mortgage interest rates continue squeezing homebuyers and sellers across Colorado.

According to the latest Market Trends Housing Report from the Colorado Association of Realtors, the inventory of active listings statewide dropped 15% from July to August, while the days on the market increased by 8% to 41 days.

The median sales price for a single-family home increased about 2% from a year ago statewide and in the metro to $580,000 and $629,995.

“Sellers who really need to sell are listing their homes while those who just want to move are sitting tight. It’s not just about wanting to move; it’s often driven by life-changing events such as births, deaths, divorces, or changes in job status,” said Boulder-area realtor Kelly Moye.

Slow sales expected to continue

Realtors predict that a quiet summer will settle into a calm fall.

“For a summer that never really got started, Denver’s last gasp of a homebuyer season ended with the same uneventful thud,” said Denver-area realtor Matt Leprino.

Estes Park-area realtor Abbey Pontius agreed.

“It’s been a long and slow summer here in the high country,” she said.

“Homes are selling, but the time on the market is staggering compared to the feverish pitch of the prior two years. Higher interest rates are holding off some buyers, and we are seeing price reductions where we hadn’t before.”

Aurora-area realtor Sunny Banka said high-interest rates continue to frustrate buyers and sellers.

“Not much has changed over the past couple of months. Sadly, the interest rates have not offered buyers any relief, and sellers are continuing to hold on to the good interest rate they have,” she said.

“It takes a pretty significant life change for sellers to sell. We are seeing more of the younger buyers who have accepted that interest rates are probably not going to see much change through the balance of the year.”

Hope for balance?

Denver’s months of supply of single-family homes hit a 51-month high of 1.9 in August, while inventory of condos hit a 34-month high of 2.4, Leprino said.

“The opportunity for homeownership can confidently be said is better than any time over the last three years, you know, aside from that whole high interest rate thing,” he said.

“Mellow is good, mellow is predictable and while we all know it’ll never last, it’s always better than either too hot or too cold.”

The news and editorial staffs of The Denver Post had no role in this post’s preparation.

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