Denver Metro Area Real Estate Market Review
January 2023
2023 is starting off with some interesting statistics. The Denver Real Estate Market is attempting to settle into its new groove, with higher interest rates, fewer buyers, motivated sellers, and a national economy that might be unsure of itself. Even with certain markets struggling to get a good foothold on sales, the Denver real estate market look rather healthy, considering the options. Let’s take a look at our local market trends and see how we can prepare.
Denver Metro Area Real Estate Market Review:
The fervor of homebuying nationwide over the past two years has definitely come to an end. Closings are down nearly 34% from last year. Interest in homes in the Denver area is still present, as pending contracts are up 51% from last month, and only down 8% from last year. This could be due to the constant influx of transplants coming to Colorado, the lingering desire to buy a home in the metropolitan area, or the lingering threat of rising interest rates. In the Denver Metro Area, housing prices have started leveling off in general, with certain areas seeing a slight dip in median sales prices on homes. January saw a drop of 1.11% in the median sales price of homes across the Denver Metro Area. This brought the average home value to $536,000. Ever since interest rates started increasing, home values leveled off and fewer buyers attempted qualifying for mortgages. This pushed the average days a home sat on the market from 20 days a year ago to 46 days this past January. The good news out of all this is that inventory is not a problem. Last year in January, it was hard to find anything on the market, and many buyers were taking what they could get. This year, we’ve seen a nearly 250% increase in active listings over last year, and with the length of time these homes are sitting on the market, negotiation power is back in the hands of the buyers. We’re seeing a Close-To-List-Price Ratio of 98% right now; meaning sales are closing 2% below asking price on average.
Boulder County Real Estate Market Review:
As always, Boulder County is a different animal to the rest of the Denver Metro real estate market. The median sales price of homes in Boulder County actually rose 1.8% over last year, despite prevailing market trends. This brought the median home price to $762,714 in January. With housing prices still rising in Boulder County, the average days on market has risen to 80, a 105% increase over last year. More time on the market means more inventory and negotiating power. Homes are currently closing at 97% of list price, and the number of listings sold is down almost 39% from last year. These statistics tell the same story as the Denver Metro real estate market: fewer buyers are shopping for homes right now as sellers slowly start adding their properties to MLS inventory. Even though Boulder continues to be an extremely desirable place to live, the number of buyers is following market trends.
Longmont Real Estate Market Review:
Longmont looks more like the rest of the Denver Metro Area real estate market, even though it is in Boulder County. With Boulder’s expensive price tag, Longmont becomes a nice secondary or tertiary option for those wishing to live in the Boulder Valley. This does not seem to be the case right now as the rest of Boulder County closer to highway 36 seems to be holding up the numbers. In Longmont, the Close-To-List-Price Ratio is relatively high for the rest of the Denver Metro real estate market, sitting at 98.7%. This means the median home sales price is just around $535,000, almost 4% lower than last year. An interesting irregularity comes with the number of homes sold. Longmont was only down 26% from last year, indicating that the affordability of Longmont homes may be helping keep interest in our neighborhoods. Sellers may also be more motivated to sell in Longmont, as 21% of homes saw a price drop, up almost 15 percentage points from last year.
How To Prepare For The Denver Metro Real Estate Market:
Buyers should prepare by securing your mortgage now. Interest rates, though holding steady right now, may rise at any moment. As you’re preparing your mortgage application, or if you’ve secured financing, take your time while looking at the Denver real estate market. Options are becoming a normal discussion when house hunting. Make sure your list is being met when going to open houses. Talk to your local realtor to discuss your best options when building an offer. Most importantly, don’t settle in this market. Your dream home is right around the corner!
Sellers should be ready to wait. Offers may come in, but they may come with conditions that take time. There are fewer buyers in the market right now, though many are returning. Higher interest rates means that buyers have to save up for larger down payments before securing loans and making offers. Many analysts believe they are returning this spring, and with a steadier economy we’ll see a return to steadier sales soon. Colorado is still a destination State for homebuyers. Your property may need a little pizzazz to entice buyers to make stronger offers. Talk to your local real estate agent to discuss what trends are in your neighborhood to see what steps you can take to attract more buyers.
When you’re ready to jump into the real estate market, whether buying or selling, get in touch with The Wise Team. We’re experts in Longmont and the larger Boulder County, Firestone, Loveland area.
