Denver Metro Area Real Estate Market Review
The first true signs of the 2023 real estate market have officially shown up on the statistics. The Denver Metro Area, compared to some parts of the country, is actually holding on very well to a healthy market. We are noticing that houses are staying on MLS much longer than the previous few years, but this is actually a good sign for both buyers and sellers. In truth, though, the market is turning into a buyer’s market. The higher interest rates and increased inventory are giving buyers an upper hand.
Denver Metro Area Real Estate Market Review:
A single family home in the Denver Metro Area at large sold at a median price of $580,000 in February. This was a little over 5% lower than the median sales price of a home sold last year. Where homes were selling at 4% over list price in February of ‘22, this year we saw homes sell at 1.3% under list price. If anything, these are the two main indicators that the Denver real estate market has officially shifted towards a buyer’s market. Other contributing factors include the number of homes available, up 64% from last year, and the number of days on market, which rose to 51 days in February 2023. With more variety and home price growth slowing nationally, it’s imperative to keep your eye on local trends when selling in order to make your property more attractive to the buyers still house hunting in the neighborhood.
Boulder County Real Estate Market Review:
Home values in Boulder County are holding strong, even against the backdrop of higher interest rates, fewer buyers, and slowing home value growth. In February, the median sales price of a home in Boulder County was $842,500, just 3% lower than this time last year. Inventory has almost doubled since last year and is staying on the market an average of 61 days. In many ways, the Boulder County real estate market is starting to more closely follow trends from the Denver metro real estate market. Buyers are taking their time, looking around, and negotiating prices. If you’re looking to buy in Boulder, be aware that homes are selling an average of 2% below list price.
Longmont Real Estate Market Review:
Longmont has some surprising statistics this year. The median sales price of a home in Longmont was up 1.1% over last year, up to $575,000. This could be in large part due to Boulder’s high prices and the rising interest rates. Longmont has always been highly attractive to commuters wishing to work in Boulder, and because of that our real estate market is typically strong despite growing trends. Even with buyers coming to Longmont, we’re still seeing some great negotiation power when moving to contract. On average, homes are selling 1.6% under list price and are sticking around on MLS for about 47 days.
What does all this mean for the Denver metro real estate market? Well, it means that 2023 is going to be an interesting year for home buyers and sellers. This year will likely be the leader in a multi-year trend in the real estate market. We’re interested to see how these trends play out as we move into the homebuying season. Even with high interest rates, more buyers will be entering the market over the next two to three months. If you’re looking to sell, be prepared to invest time on the market in order to attract buyers. Leave some wiggle room in your list price so to help with the negotiation process. If you’re looking to buy, start house hunting now so you can see what’s available across the metro area. You may find something that’s just right for you and your needs! Whatever you’re doing in the Denver metro real estate market, get in touch with the Wise Team and we can help guide you through these changing markets!