(The Center Square) - A sharp increase in inventory helped temper Colorado's housing market in June, according to new data from the Colorado Association of Realtors (CAR).
In the Denver metro area, inventory of single-unit homes increased to 8,125, representing a 10 percent increase. The number of condos, townhomes, and apartments in the metro area also jumped to 2,048, a more than 11 percent increase.
At the statewide level, single-unit home inventory grew by 8.7 percent to more than 15,000 while the number of condos, apartments, and townhomes for sale increased to 3,520, a 9.4 percent increase since June.
"I have to admit, even I am a little shocked at how fast the market decided to change," Patrick Muldoon, a realtor in Colorado Springs, said in a statement. "It is like we had a really hot summer day and a few days later, a blizzard. One weekend we were watching buyers toss everything they could at a house just to have a chance. Four weeks later, sellers were still shell shocked they missed the top of the market."
Colorado's housing market has continued to soar despite the Federal Reserve raising interest rates in an effort to combat stubborn inflation. Over the last 12 months, the statewide median home price has grown by 10.5 percent to more than $580,000.
However, a steadily rising supply of housing inventory has helped to shift Colorado's housing market in favor of homebuyers as many existing homes on the market are now seeing price reductions.
In Boulder County, realtor Kelly Moye said she has seen sales decrease in her territory because of rising interest rates. Meanwhile, inventory has steadily increased from a one-month's supply up to two months, which has given buyers "a few more options," she said.
"The buyers who can still qualify at the higher rates are enjoying a few more days to look at homes and fewer competitive situations," Moye said. "All in all, this market correction is just what we needed to slow down a bit, but not enough to come anywhere close to a buyer's market. Not yet."