Colorado Housing Market Analysis - August 2024
The Colorado housing market in August 2024 presents a nuanced picture, with various indicators showing both positive and negative trends. The Median Sales Price for homes in the state stands at $594,500, reflecting a modest year-over-year (YoY) increase of 0.3%. However, the Median List Price has decreased by 2.1% YoY, now at $605,900. This divergence suggests a potential softening in seller expectations or increased buyer negotiation power.
When examining Price Per Square Foot, the median price is $274, down by 1.7% YoY. Conversely, the Median List Price per square foot has risen by 1.1% YoY to $317. This indicates that while sellers are listing homes at higher prices per square foot, the actual sale prices are not keeping pace, possibly due to market adjustments or buyer resistance to higher prices.
Sales activity has seen a decline, with 7,101 Homes Sold, marking a 2.4% decrease YoY. Pending Sales have also dropped by 5.1% YoY to 9,396. Despite these declines, New Listings have slightly increased by 0.6% YoY, totaling 10,173. This increase in New Listings, coupled with a significant 27.3% YoY rise in inventory to 25,551 homes, suggests a growing supply in the market.
The Months of Supply metric, which indicates how long it would take to sell all current inventory at the current sales pace, has surged by 80.0% YoY to 3.60 months. This substantial increase points to a shift towards a more balanced market, or even a buyer's market, compared to the previous year.
Homes are taking longer to sell, with the Median Days on Market now at 35, up by 9.0% YoY. This extended time on the market further underscores the cooling trend in the housing market.
The average sale to list ratio has slightly decreased by 0.5% YoY to 98.5%, indicating that homes are selling closer to their list prices but with a slight downward adjustment. Additionally, the percentage of Homes Sold above list price has dropped by 5.9% YoY to 20.5%, reflecting fewer bidding wars and more price negotiations.
Price Drops have seen a minor decrease of 0.6% YoY, now at 37.8%, suggesting that while sellers are adjusting prices, the rate of these adjustments has stabilized. The percentage of homes going off the market within two weeks has declined by 7.7% YoY to 29.3%, indicating a slower pace of sales activity.
Overall, the Colorado housing market in August 2024 shows signs of cooling, with increased inventory, longer days on market, and a higher Months of Supply. While prices have not drastically fallen, the slower sales activity and increased supply suggest a shift towards a more balanced market, providing potential opportunities for buyers.
