-REcolorado data for November shows a housing market that is experiencing seasonal cooling as consumers prepare for the holidays. Demand for homes is lower than last year, as indicated by year-over-year decreases in closings and homes going under contract.
-Standing inventory, which is measured by the number of Active listings at the close of the month, returned to pre-pandemic levels in November. The number of listings actively available for sale is 148% higher than we saw last November giving buyers more choices.
-We continue to see price growth from a year-over-year perspective, but we are no longer seeing the double-digit growth that we experienced earlier this year and last. Median home prices are up 4% year over year and decreased slightly from last month. More than half of the homes that sold in November had a closing price that was lower than the original list price.
-Sellers are less active than we saw a year ago. The number of newly listed homes decreased for the fifth consecutive month. Homes are spending a median of just over 3 weeks on the market.
The number of closings in November was lower than we’ve seen in any November since 2011. Closings fell 43% from last year and saw a seasonal decrease of 14% compared to last month.
The number of contracts executed on home listings was 36% lower this November than a year ago. As compared to last month, the number of listings that moved to the Pending status saw a seasonal decrease of 12%, as shoppers took a break from their home searches to focus on the holiday season. Throughout the month approximately 12% of homes did not make it to the closing table and moved back to actively available for sale.
The median closed price of a home in the Denver Metro area is continuing to slow. Median home values are 4% higher than last November and down slightly compared to last month. REcolorado data indicates buyers have more bargaining power. More than half of all homes that closed in November saw a closed price that was lower than the original list price. The average price decrease was $23,783, or 3.3% lower than the original list price.
There are indications that sellers are waiting until 2023 to put their homes on the market. The number of homes listings sellers brought to the market in November was 28% lower than what we saw last November. From a month-to-month perspective, the number of new listings of homes for sale saw a seasonal decrease of 30%.
Days in MLS
Home listings are spending more time on the market. In November, homes spent a median of 22 days on the market, which is 17 days longer than last year and 4 days longer than last month.
Standing inventory of homes for sale has nearly returned to pre-pandemic levels. At the close of November, there were 6,026 listings actively available for sale in the Denver Metro Area, which is almost two thirds more than last year at this time. Approximately 59% of active listings have seen a price decrease.
In November, the gross volume of sales totaled nearly $2B, which is 41% lower than last year as a result of a decrease in closings.