The Front Range real estate market continues to adjust to both increasingly high interest rates along with growing concerns of an impending recession. Buyers are acting more carefully, sellers are experiencing longer list times and are making price reductions, and investor activity has largely gone on hold. Home values have dropped about 10% off of their highs of March/April and probably have some more declines to go before leveling out. However, interestingly, home prices are still up year-over-year.
We are in a post-pandemic-driven-high-hangover coupled with an ice cold bucket of additional economic challenges on the horizon. So what's it all amount to for our Front Range market? Are things super bad? No, not really. Just a lot less exciting than it has been. Let's take a look below.
Before we look at the usual data, we think it is particularly useful to point out that in real estate, we only ever have the past month's data to work from, and in a
quickly shifting market, we need to do a little extra interpretation of
the numbers to get a good idea of what is happening in the moment.
Noteworthy Stat of the Month
One of the most helpful and telling statistics that best shows the change from our hot spring market to our lukewarm-at-best fall market is the number of showings per day per pending listing before receiving a contract.
Over the last few months we saw median showings per listing decline (with a small uptick in the past month), while days on market went up. These two things happening together add up to a continuous month-to-month decline in buyer activity for any given day that home was for sale. See the chart below: