Real estate markets around the state are reporting what’s becoming a familiar pattern this year: the supply of homes on the market keeps increasing, but without any enthusiasm from homebuyers aimed at absorbing all of that inventory.
And despite the added stock of homes available, prices are holding close to their previous levels, according to the latest monthly report by the Colorado Association of Realtors.
CAR’s Market Trends report issued Monday shows 24,258 single-family homes on the market at the end of June statewide — around 9,000 more listings than were available exactly two years ago, when interest rates were already beginning to slow the pace of sales.
Twice the level
The number of townhomes and condos available stood at 8,686 at the beginning of July, around twice the level at the beginning of July 2023.
Despite the growing numbers, the price of a typical single-family home on the market in Colorado stood at $597,500 this month, down less than a percent from last month, up by 0.2% since the first of the year. The typical townhome or condo price stood 3.6% lower than a year ago, $406,000.
That carried both parts of the market closer to what analysts have traditionally defined as a buyer’s market, where conditions should be more favorable for buyers, with more homes to choose from, and prices that would be more appealing.
But although some individual markets report more signs of life, sales generally haven’t kept pace with inventory, with agents noting that buyers have yet to react strongly to the added supply.
Colorado Springs agent Jay Gupta, a regular contributor to the statewide analysis, noted that a combined 4,055 homes were on the market now, an increase of more than 36.3% over a year ago, and up more than 10 percent over last month.
That stands as the highest June inventory in the Colorado Springs market since 2015.
At the current rate of sales, the inventory works out to be 3.4 months of supply, Gupta said. The estimated time on the market for a home to sell, he added, climbs as the price range increases.
Months of supply climbs
For homes under $400,000, the supply is just over three months; but for homes priced over $1 million, the estimated supply climbs to almost six months.
Pueblo agent David Anderson saw the growing inventory as an advantage for buyers.
“Our 861 active listings represented a 17% increase and provided buyers with a lot more to look at,” he said.
“With fewer buyers looking, there’s less competition, more time, and less pressure on those actively looking,” Anderson said.
However, he added, many buyers were sitting on the sidelines due to higher interest rates and credit score factors.
Pending sales were still down year-over-year, while the median home price continued ticking up.
In Grand Junction and Mesa County, inventory had grown to 845 listings, but sales have lagged, said Ann Hayes, a regular report contributor.
“Interest rates seem to be the biggest challenge, as many of the jobs do not produce the income required to qualify,” she said in the report.
In Pagosa Springs, the supply of homes on the market climbed to almost nine months — well into buyer-market territory, according to agent Wen Saunders.
“Sellers are forced to compete for buyers,” he said. “Strategic home pricing is the most important home sale factor, especially as inventory climbs.”
Listings are also popping up in ski markets, according to Summit County agent Dana Cottrell, reporting 39% more than at this time last year. She also reports a growing number of buyers, taking 5% more sales than she saw a year ago.
“It’s not a full-blown spring rush, but there’s a definite stir in the soil,” Cottrell said.
“While median sale prices are softening, specific segments are blooming,” she added. “Multi-family homes in the $1 million to $1.5 million range saw a 233% spike in sales over last month.”
“High-end buyers didn’t take a spring break,” Cottrell said. “Half of all May closings were over $1 million, and 36% of transactions were cash — not quite snowballing, but still strong enough to suggest deep pockets aren’t seasonal.”
Steamboat market
In Routt County, centered around Steamboat Springs, affordability of homes grows as the distance increases from the coveted ski town, known for its champagne powder, according to agent Marci Valicenti.
“The community of Hayden represents the most affordable location in Routt County with the average home sale to date at $697,947 and multi-family just under $400,000,” said Valicenti.
“In 2019 it was a more normal market with more inventory, average days on market was longer and there were price and inspection negotiations,” she said.
“The major difference now is that prices are higher,” Valicenti said. “There are still properties that go quick and buyers that know a cream puff when they see one are moving fast.”
“Multiple offers happen, but they are fewer in number, as well as fewer over asking price.”
The Colorado Association of Realtors represents some 23,000 members statewide.
