December 2022 Douglas County Real Estate Market Update

What's Been Happening?

The number of home sales and prices in December continued to decline as we approached the conclusion of one of the most tumultuous years in real estate history. The winter trough in the Douglas County real estate market typically occurs in January and lasts just one month before bouncing back sharply as the spring season begins. Last year, that trough came early and persisted, with closed listings below 500 units/month for October, November, and December. Does this indicate the market will bounce back into spring earlier this year? Or are we in for a prolonged season of inactivity?

Heading Towards a Buyer's Market

If you’ve been looking to buy a home, December may have been the month for you with more deals hitting the market. Average percent of list price received, one of my favorite metrics, fell from all-time record highs in April (105%+) to lows not seen since 2014 in December (98.8%). Despite relatively slim levels of inventory at around 1.4 months, many sellers have resorted to drastic price reductions to attract attention to their homes. Average days on market, one of the key drivers of price reductions, has spiked to 51 days, up 21% from last month and over 4x longer than the spring’s peak.

Looking Into Next Year...

As we enter 2023, many unknowns remain. With economic conditions weakening and rampant inflation, many speculate a market correction is overdue. Others predict we may have another frenzy in the summer if the economy can squeeze out yet another year of rapid growth. Either way, if you’re a homeowner in Douglas County – you likely have no need to worry. As local economic growth rapidly continues, your home is probably not losing value in the long run in most feasible economic scenarios. The Denver Metro Area has continually proven to be one of the world’s most desirable places to live – and I don’t see that changing anytime soon.