May 2022 Market Update

As interest rates surpassed 5 percent, Denver metro's active listings available at the end of April increased by 44.26 percent over last month and 23.52 percent from last year (DMAR). We ended the month with 3,204 active homes on the market and saw 4,912 homes close. The median price of all home types in the Denver metro area is currently $624,950, an increase of 19.04 percent from the same period a year ago. Homes are selling on average in 8 days, 38.46 percent faster than this time last year.

• “For a median-priced home financed with a 30-year loan, the monthly payment is $550 higher than a 

  year ago, an increase of 46%.” –CNBC/Realtor.com

• “The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances

  ($647,200 or less) increased to 5.37% from 5.20%, the highest rate since 2009.” – CNBC/MBA

• “The adjustable-rate mortgage share of applications last week was over 9% by loan count and 17%

  based on dollar volume. At 9%, the ARM share was double what it was three months ago.” –

  CNBC/MBA

• “Applications to refinance a home loan fell 9% for the week and were 71% lower than the same week 

  one year ago. The refinance share of total applications dropped to just 35%. It was about 61% of the 

  total application volume a year ago.” – CNBC/MBA

• “Total mortgage application volume fell 8.3% last week compared with the previous week.” –

  CNBC/MBA

• “The ARM share of applications last week was over 9% by loan count and 17% based on dollar volume.

  At 9%, the ARM share was double what it was three months ago, which also coincides with the 1.5

  percentage point increase in the 30-year fixed rate.” – CNBC/MBA

• As mortgage rates and prices continue to increase, waiting to buy will cost you. You'll lose out on equity and lower prices. You can always refinance later on when/if mortgage rates go down.

• Remember, the slowing down of home appreciation doesn't mean prices have gone down, it just means prices are not going up as quickly as before!

• We should see more inventory hit the market as we head into late spring and the early summer months.

• I can help you establish your exact home criteria and set you up for success as you begin your home buying journey.

• Really unsure where to start? Speak with a mortgage lender! They will be able to give you a breakdown of what you can afford and what you can expect to pay per month

• List soon before rates go even higher: Affordability and buyer fatigue have already become a dealbreaker issue for many homebuyers as higher interest rates take hold.

• Inflation and higher rates will reduce the number of buyers shopping for a home and therefore ease the level of fierce buyer competition.

• The lack of home inventory will continue to keep home prices at lofty levels.

• Buyers are ready to purchase! Denver metro had 6,881 new homes hit the market and 5,725 go under contract.

• Spring is historically a great time to list for sellers and you can expect the process to go fast: the median days on market in April was a mere 4 days.

• We are in an incredibly strong sellers' market, with only a 0.71 months supply of inventory for single-family homes and 0.52 for condos. A 6 month's supply is considered a balanced market: Anything less than a 1 month of supply suggests you should have multiple offers.

• Our region’s current list-to-sell ratio keeps increasing and is currently at 105.42%, meaning that the average home sold for over the asking price!

• I can tell you your odds of selling quickly and the average numbers of showings to expect in your price range and zip code.

You might be unsure if now is the right time to buy and sell a home as interest rates and home prices continue to rise. 

I understand that owning a home or thinking of purchasing can feel tough right now.