2022 Year-End Market Report
2022 began as one of the most competitive housing markets but did not end that way. There were less homes on the market to start a year than at any point since 2009, at just over 2,000. In turn, home prices set records across the nation, topping out in Denver at nearly $820,000 at the end of spring.
As prices found their peak at the end of spring, the Fed began raising rates in hopes of slowing the economy as inflation hit a 40-year high. Buyers found far less buying power and sellers felt the frustration of receiving offers after several weeks, not days.
As rates increased so too did inventory, reaching a peak of 8,496 homes in September. Like most things in 2022, that did not last as inventory from September through year-end decreased to just 4,454 homes. This was not just a result of high demand, but rather many homeowners with rates below 4% opting to stay put.
The total number of closed properties in 2022 was 50,743, down 20% YOY, while 48,595 listings closed, the lowest amount since 2012. The increase in rates and decrease in demand impacted values, with the average sales price for detached homes in December finishing just shy of $702,000. While much of the gain was lost in Q3 and Q4, a whopping 11.6% appreciation gain for the year remained.
Look for 2023 to bring new prospects to buyers as motivated sellers may be more willing to negotiate on price, inspection items and pay down interest rates to make the home more desirable. This may be the best year to sell and buy concurrently than we have seen in years, so prepare accordingly.