Colorado homebuyers struggle with limited inventory

Despite a double-digit percentage increase in new listings on the market, the continued low inventory and interest rates that hover around 7% hindered potential buyers in May, according to the Colorado Association of Realtors monthly report.

While the median prices of statewide and Denver metro area remain below last year’s record highs, limited inventory pushed prices up for the fourth month.

“Have you noticed a few less ‘sold’ signs in your neighborhood? If you live in Denver County, you’re not wrong with roughly one-third fewer sales taking place across freestanding homes and condos alike this May,” said Matt Leprino with Remingo.

Despite the limited inventory, sellers can’t bank on anything selling and must make necessary improvements before listing their homes.

“Sellers, if you’re looking for top dollar, then your home better be priced ‘right on’ and your condition needs to be superior to your competition. Being ‘right’ is what’s most important in this fickle market,” said Karen Levine with RE/MAX.

“Buyers have more opportunity and a bit less pressure but shouldn’t get complacent, as that well-priced, good condition property in that ‘just right’ location is experiencing multiple offers in just a few days on the market.”

Statewide stats:

• The number of new listings decreased by 21%, from 14,398 in May 2022 to 11,414 in May this year.
• The number of sold listings decreased by 23% from 11,319 in May 2022 to 8,737 last month.
• The median sale price dropped 3% from $556,000 in May 2022 to $539,900 last month.
• The number of days on the market increased 77% from 22 days in May 2022 to 39 last month.
• The percentage of list price received dropped 4% from 104% in May 2022 to 100% last month.

Metro Denver stats:

• The number of new listings decreased by 22%, from 8,515 in May 2022 to 6,646 in May this year.
• The number of sold listings decreased by 24% from 6,877 in May 2022 to 5,260 last month.
• The median sale price dropped 4% from $601,405 in May 2022 to $576,400 last month.
• The number of days on the market increased by 160% from 10 days in May 2022 to 26 last month.
• The percentage of list price received dropped 4% from 105% in May 2022 to 100% last month.