The Denver housing market is undergoing a significant cooling period characterized by a dramatic increase in listings and declining home prices. As of April, active listings reached 10,354, a 65% increase from the previous year, indicating an oversupply compared to buyer demand. Contributing factors include reduced migration to Colorado, increased ownership costs, and affordability challenges, where housing cost has grown by 18% while wages rose by only 6%. Consequently, median home prices are down, alongside a 7.1% decrease in rental prices, emphasizing a potential price correction.
In April, the supply of active listings in the Denver metro area hit 10,354, up 65% from a year ago, the highest for any April since 2017.
Affordability is a major headwind, with home ownership costs rising by 18% since 2022, while wages have only increased by 6%."
"The costs are challenging. It makes purchasing less attainable for many in the area," says Amanda Snitker, highlighting the strains faced by potential buyers.
As of April, the number of homes for sale in the Denver metro is 90% higher than the pre-pandemic average, showcasing an oversupply.
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