PRICES

that’s 53 days, or about four weeks longer than 22 days in January 2022. at’s getting back to the time just before the pandemic, or 48 days in January 2020.

Home prices in Denver and Colorado increased at unprecedented rates in the past two years. Metro Denver’s median sales price hit a high of $660,000 in April, up 17.4% in a year. at dropped to $569,804, as of January, which is 1.4% lower than a year-ago January. As Littleton economist Patty Silverstein told the real estate industry at an economic summit last week, “We’re (in) some type of slowdown but that’s very welcome. We’re in a rest period here.” e slowdown began last spring as the Federal Reserve raised interest rates to cool in ation. But mortgage rates have more than doubled in a year, making it much more expensive for home buyers who need a loan. Based on the Denver metro area’s median sales price, a buyer’s monthly payment is roughly $1,000 more than it would have been last January, according to Bankrate’s mortgage calculator.

“ e major thing we have seen is a dramatic slowdown in activity,” said Ann Hayes, a Realtor with Keller Williams Colorado West Realty in Grand Junction. “A lot of people, with the change in the interest rates, were priced out of the market.”

Mesa County saw a 3.4% dip in its median-sales price, falling to $379,950 in January. at makes it a little more a ordable for rst-time buyers. But even though mortgage rates are below their peak, they are still above 6.5%. And that’s keeping homeowners in their homes, too.

“Sellers don’t like the fact that they’re at a 3% (mortgage loan) rate and if they buy a replacement, they’re going to be at six, or six and three-quarter rate,” Hayes said. “A lot of sellers are not even coming on the market.”

Some perspective

But the past two years have just been unprecedented, said Hayes, who’s sold houses in the area since 1994. Fifteen years ago, mortgage rates were in the 6% to 7% range, and back in the 1980s, they were double digits, with 30-year xed rate loans averaging 18.63% in 1981, according to Freddie Mac historical data.

Still, Mesa County is a relatively hot market. e number of houses for sale in the area in and around Grand Junction has doubled in the past year to 456, compared with inventory of 1,816 homes in 2016, according to CAR. Over time, she said, buyers adjust to higher rates and higher prices if that’s where the market goes.

“People will have more babies (and) that will encourage people to think about doing other things,” Hayes said. “Life will start happening where it’s, ‘Well, I don’t like the interest rate, but, you know, a twobedroom house with four kids isn’t going to work anymore.’”

Ask anyone in the real estate industry and they’ll tell you buying a house is a long-term investment. Values go up overtime even after slumps during downturns.

“At no time in recorded history have prices, generally speaking, decreased,” said Leprino, pointing to the price dips of 2008, the early 1990s and other recessions. For the most part, the price of a house today is much higher than it’s ever been.

Higher prices, multiple o ers still exist

But every market is di erent. Places like Pagosa Springs are dealing with a scarcity of houses below their median sales price, which increased a whopping 33% to $520,000 in January. Local Realtor Wen Saunders said the lower-priced homes below the $400,000 range “were gobbled up with low interest rates and cash buyers,” and many who were buying a second home.

“ e bread and butter for Pagosa was always somewhere in the $300,000s. at was a beautiful thing. In 2021, we sold 105 and in 2022, we sold 56. Why? Because we didn’t have any more,” said Saunders, who’s been a Realtor in Pagosa for 14 years.

Meanwhile, the million-dollar homes went the other direction. Back in 2017, she said Pagosa had a ve-year inventory of million-dollar homes and only about ve sold in a year.

“In 2021, we sold 48 homes that were in the million-dollar price point. And then there were another 11 that were in the $2 million range,” she said. “ e number of sales will drop, but I just don’t see the prices dropping.” e data from the Northern Colorado multiple listing service recorded the city’s median price in January at $549,999, up about $11,000 from a year ago. In Larimer County, median sale prices increased 6.4% to $570,000, according to CAR data. Inventory has nearly doubled in a year, but it’s only taking two weeks longer to get a house sold in the county.

In Fort Collins, the median sales price in January was also higher than a year ago. ere are still multiple o ers going on, said Chris Hardy at Elevations Real Estate in Old Town Fort Collins. For one of his fellow agents, 8 out of 10 sales in January involved multiple o ers.

“It wasn’t like it was back in April or May when there were 15, 20 and 30 o ers on any home that came on the market. But there were at least two or more o ers on these homes,” Hardy said.

But Hardy added a caveat to the higher prices. Houses aren’t necessarily getting their full list price, especially those on the market since November. ose have likely reduced their price. And competition among buyers doesn’t mean houses are selling above the asking price.

“Last summer, you couldn’t buy anything inside the city limits of Fort Collins for under $500,000,” Hardy said. “ ere wasn’t anything and now that’s changed a little bit and so there are some homes in the mid-fours that get snapped up relatively quickly. In those highly desirable price points, there’s still quite a bit of activity.” to turn it around.