2022 brought out substantial records as inventory took a nosedive and buyer demand skyrocketed
2022 Is a wrap and what a year it was. Beginning in 2022 brought out substantial records as inventory took a nosedive and buyer demand skyrocketed when interest rates began to increase. We peaked out in April 2022 with an average single family detached home selling for $819,090 and ended the year with $701,949 for an average sales price. What started the year off as a rocket saw the market fizzle as affordability was impacted by higher interest rates and waning demand. We took so much in the first 4 months of the year and ended up giving back a substantial portion in the latter part. We still managed to have historically high appreciation when we average out the entire year with an average sales price growth of 11.6%.
For the month of December, the sellers who wanted to sell were very serious about getting their home under contract and upped the ante by bringing out the price reductions. 59.4% Of detached single family homes closed with price reductions averaging -7.8% from their original list price. Attached single family saw 46.1% of homes reduce their price with an average of a -6.2% reduction. The last time we saw price reductions on this scale was in December of 2010. Until interest rates come down, I don't think we will see price increases in Greater Metro Denver. The media is going to call attention to negative sales price growth early in 2023 as we won't have the same takeoff that we did in 2022 due to the shift between supply and demand. The market continues to shift from the hyper market pandemic years into something that more closely resembles the market cycles of 2013-2019.
Many people are looking to time the market and it's tough to peg down when the market will really pick up in 2023. Again, I'm putting a lot more weight on 2013-2019 when our market was more predictable, and we had similar levels of supply and demand as we do today. In the past we would see a bump of market activity after the last game played by the Denver Broncos, so hopefully earlier this year since we won't be in the running for the Super Bowl. The market then again boosts the weekend directly following the Super Bowl a large pick up of market activity. Denver has trended towards an earlier selling season with the end of February, March, April and May being the best months in which to list. This image can be found by price range in the Weekly Report download link. Market pick up can vary by price range, notably for homes over $1,000,000 listing earlier in February or March providing the best market conditions favorable for a seller. Buyers will find that the market eases, prices fall and negotiating power is enhanced in the later summer and fall months.
