Colorado Real Estate Market Insights for July 2024
Colorado Housing Market Analysis - July 2024
The Colorado housing market in July 2024 presents a mixed bag of trends, reflecting both resilience and challenges. The data indicates a nuanced landscape that potential buyers, sellers, and investors should carefully consider.
Median Sales Price
The median sales price in Colorado for July 2024 stands at $593,400. This figure represents a slight decrease of 0.02% year-over-year (YoY). Despite this minor dip, the market remains relatively stable in terms of sales prices, suggesting that while there may be some downward pressure, it is not significant enough to cause major concern.
Median List Price
The median list price is reported at $624,300, which is down by 7% YoY. This decline indicates that sellers are adjusting their expectations in response to market conditions, potentially to attract more buyers in a competitive environment. The reduction in list prices could be a strategic move to stimulate demand and expedite sales.
Price Per Square Foot
The median price per square foot is $269, reflecting a 1% decrease YoY. Conversely, the median list price per square foot has increased by 4% YoY, now at $323. This divergence suggests that while overall prices per square foot have slightly decreased, sellers are still optimistic about the value of their properties, as evidenced by the higher list prices per square foot.
Sales and Listings
In terms of sales activity, 6,870 homes were sold in July 2024, marking a 2% increase YoY. This uptick in sales indicates a healthy demand for housing in Colorado. However, pending sales have decreased by 3% YoY, totaling 9,265. This decline in pending sales could signal a potential slowdown in future transactions.
New listings have risen by 6% YoY, reaching 10,631. This increase in new listings suggests that more homeowners are looking to sell, possibly in response to favorable market conditions or personal circumstances. The inventory of homes available for sale has surged by 31% YoY, now at 25,476. This significant rise in inventory provides buyers with more options and could lead to more competitive pricing.
Market Dynamics
The months of supply, a key indicator of market balance, has increased dramatically by 80% YoY, now standing at 3.7 months. This substantial rise indicates a shift towards a more balanced market, where the supply of homes is better aligned with demand. The median days on market have also increased by 7% YoY, now at 29 days, suggesting that homes are taking slightly longer to sell.
Sale to List Price Ratio
The average sale to list price ratio is 0.99, down by 1% YoY. This ratio indicates that, on average, homes are selling very close to their list prices, though slightly below. The percentage of homes sold above list price has decreased by 7% YoY, now at 23%. This decline suggests that bidding wars may be less common, and buyers have more negotiating power.
Price Adjustments and Off-Market Activity
The percentage of price drops remains unchanged YoY at 38.84%. This stability indicates that while price adjustments are common, the frequency has not increased. The percentage of homes going off the market within two weeks has decreased by 9% YoY, now at 33%. This decline suggests that homes are not selling as quickly as they were in the previous year, possibly due to increased inventory and more cautious buyer behavior.
Conclusion
Overall, the Colorado housing market in July 2024 exhibits a blend of stability and adjustment. While median sales prices have remained relatively flat, list prices and price per square foot metrics show varying trends. Increased inventory and new listings provide more options for buyers, while the rise in months of supply points to a more balanced market. Sellers may need to be more strategic with pricing and expectations, as indicated by the slight increase in days on market and the decrease in homes sold above list price. As always, staying informed and adaptable will be key for all market participants navigating these evolving conditions.
