Colorado- Rising interest rates and inventory prices may impact the housing market

With the surge in new construction the housing inventory saw an upward trend in the sale setup. April witnessed rise in home loan interest rates and also home sale prices.

Realtors see a turn of the tide in Colorado’s housing market, although home sale prices around the state are still hitting record highs. 

With the surge in new construction the housing inventory saw an upward trend in the sale setup. April witnessed rise in home loan interest rates and also home sale prices.

Denver’s single-family median price showed an increase of 16.3% between period of April 2021 and April 2022.

As per Market Trends Housing Report from the Colorado Association of Realtors (CAR) for the month of April 2022, the state-wide median sales price for single-family homes hit a record $600,000. Whereas it was $660,000 for the seven-county Denver metro area was $660,000. 

Kelly Moye, a Boulder and Broomfield realtor, said in the report, “They say you only know when the downturn comes right after it happened. It seems to have happened a few weeks ago and with more rate hikes on the horizon, we expect a very different second half of the year compared to 2021.”

Denver County continues to see a rise in median prices, as it has over the last eight months. However, the increase is not as large as it was compared to the previous year. Between April 2021 and April 2022, Denver’s single-family median price increased 16.3%, while the prior year’s median price increase was 21.5%. 

Denver’s single-family median price showed an increase over the last eight months. However the rise is not as high as expected, it was recorded at 16.3% between period of April 2021 and April 2022

Home buyers are impacted by rising high interest rates and are priced out of homes they otherwise had been eyeing in previous weeks in Jefferson County as per the reports.

“Are we seeing changes with the increase in interest rates? The answer is a definitive, yes,” Aurora-area realtor Sunny Banka said in the report. “We are seeing more price reductions on some homes and in some areas. Sellers are perhaps thinking they have hit the top of the current market on pricing. We are seeing some increase in listings, which could be due to the time of year, and we are seeing some median prices go down over the previous month. Buyers should note that, while the market is still hot, they have a better opportunity at getting the home they are looking for.”

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