Nationally, the median price for a home sold in May was $407,000, up 14.8% from May 2021. This was the first time the median price exceeded $400,000. Although prices rose, sales of existing homes declined for the fourth straight month. Sales were down 3.4% from April and 8.6% from May 2021.
Nationwide, the number of homes on the market rose to 1.16 million at the end of May, equal to 2.6 months of inventory at the current monthly sales pace.
In the Denver area, things look a little bit different. Sales of existing homes have continued to rise here. In May, sales were up 3.75% over April, and April sales were up 2.98% over March.
In our area, there’s still a considerable lack of inventory, even as more homes go up for sale. For example, in May, we only had .9 months of inventory versus 2.6 nationally. That means that if no other homes came on the market, all homes for sale would sell in less than a month. So, in general, we’re shorter on inventory than the rest of the country.
We continue to keep an eye on price reductions. Sellers continue to chase buyers with price reductions in many cities. For example, in Las Vegas, 20.1% of homes sold in May had been reduced in price; in Austin, that number was 18.3%; in Phoenix, 17.5% of homes sold in May had been reduced in price. In Metro Denver, during May, 11.9% of the homes sold had been reduced in price, according to Realtor.com’s Market Survey.
Price reductions indicate a cooling in the market. Pricing a home today isn’t the same as it was three months ago. Then, we could look at recent comparable sales and increase our asking price. Now, with many homes, we may have to list a home for less than recently sold similar homes.
The market is changing fast and is unlike any we’ve seen in years. We’ll keep you updated with what’s happening in Colorado and nationally.
Wondering when to sell? Call David and Tom at 720-782-2468 or schedule a free phone consultation.
Metro Denver Real Estate Market Activity
During the last week:
New Listings – 2064
Back On Market – 331
Price Increase – 112
Price Decrease – 1537
Pending – 1558
Withdrawn – 166
Closed – 1386
Expired – 159
New Listings – 1842
Back On Market – 319
Price Increase – 120
Price Decrease – 1407
Pending – 1647
Withdrawn – 183
Closed – 1421
Expired – 130
Based on data from REColorado®