#426: November 2022 Market Stats: Don't Be Afraid to Ask for Concessions

The November 2022 Colorado market stats are out, and we’re breaking down the data and analyzing the trends. It looks like seasonality is finally back in both Denver and Colorado Springs, with month over month sales and inventory down but higher than this time last year. It’s still a seller’s market, but buyers have the ability to ask for concessions that would have been unheard of in the past couple of years.

A lot of people are waiting to see what the market and interest rates will do over the next couple of months. This means it’s a great time to optimize your portfolio in non-transactional ways to be ready to act next year.

To hear the full discussion with Envision Advisors agents Jenny Bayless, Preston Newberry, and me, listen to the podcast or watch the YouTube video.

Three Learning Options!

1. Listen to the podcast “#426: November 2022 Market Stats: Don’t Be Afraid to Ask for Concessions” Denver Real Estate Investing Podcast
2. Watch the YouTube video.
3. Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.

Denver Market Stats and Observations Active Listings

• Down 14% from last month.
  • That’s a normal pattern for seasonality; people tend to take listings off market before Thanksgiving and put them back in mid-January after the holidays.
  • Listings are still up +180% from same time last year.
• Much more growth (215%) in single family homes vs condos (110%).
• The average number of active listings (1985-current) is 13,900 in November.
  • While our 6,250 active listings is quite a bit more than last year, it’s no where close to “normal” levels.
  • It’s still, technically, a seller’s market.

Number Closed

• Down 18% from last month.
  • Again, this is a normal seasonal pattern.
• Down 46% from this time last year.
  • For a few months, we have noted that the number of new mortgage applications is down greatly from last year. It’s no surprise the number of homes closed follows that trend.
  • Despite mortgage rates dropping more than 0.6% from their high point, we have not seen the number of new mortgage apps increase yet.
  • I’m not seeing evidence that sales unit count will be going up for at least a few months.

Price

• Down 0.2% from last month.
• Up 5% from last year
• I’m still expecting total year ’23 prices to be +/- 3% from total year ’22 prices.
• Some neighborhoods will almost certainly see small price declines.

Days on Market

• 34 days, up 127% from this time last year.
  • Homes are up 140%.
  • Condos are up 75%.
• 58% of listings have had at least one price drop vs. 32% this time last year.

Colorado Springs Market Stats and Observations New Listings

• Homes
  • Down 23% from last month.
  • Down 21% from last year.
• Condos
  • Down 13% from last month.
  • Down 28% from last year.
• The number of listings in Denver was also down. Most of this is a typical seasonal pattern. Sellers don’t like to have their homes on the market over the holidays.

Number Closed

• Homes
  • Down 15% from last month.
  • Down 36% from last year.
• Condos
  • Down 9% from last month.
  • Down 41% from last year.
• Denver is off a little more than CO Springs. In the last downturn, CO Springs was more resilient than Denver, too.

Sales Price

• Homes
  • Down 1% from last month.
  • Up 4% from last year.
• Condos
  • Up 1% from last month.
  • Up 10% from last year.

Inventory

• Homes
  • Down 8% from last month.
  • Up 184% from last year.
• Condos
  • Down 1% from last month.
  • Up 128% from last year.
• We’re seeing similar patterns across the US with inventory building vs. last year.

Note: The above Executive Summary is from Lon Welsh of Your Castle Real Estate.

Denver Housing Trends Colorado Springs Housing Trends Get Started Building Your Own Rental Property Portfolio

If you’re interested in buying an investment property and want to know what’s on the market now, sign up for our weekly deals list email.