This year is starting strong throughout the Denver Metro Area. The Real Estate Market in Colorado appears to be on track for steady growth into the spring. With little change in the mortgage interest rates, both buyers and sellers appear ready to move our inventory. Across the metro, we’re still seeing low inventory numbers in every market, but it’s only the end of January – the spring selling season has not really begun yet (even though the weather seems to think we’re there). Let’s take a look at what the first of the year looks like.
Denver Metro Area
The Denver metro area real estate market looks very healthy. Median sales prices came to just above $565,000. That’s over 4% higher than last January, and appears to be rising still. Demand is high across the metro area. This doesn’t seem to make houses move off MLS any faster, however. The average number of days a home is listed rose nearly 7% from last year, and now takes around 49 days to go to sell. This leaves room for negotiations, price reductions, or offers and conditions when looking at your purchase/sale.
As the median sales price of a detached home in the Denver Area came to $625,000, many prospective buyers, and especially first-time homebuyers, have decided to continue renting until one of two factors comes. The first factor would be lower interest rates. At around 6.5% – 7%, mortgage payments are considerably higher than rental rates for similar options in rental communities. The second factor would be a lowering of housing valuations. This seems very unlikely in the near future, especially in Colorado. Still, buyers are searching the area and moving inventory at a steady, healthy pace.
Boulder County
In January of 2023, we saw several multi-million dollar homes sell in Boulder County, which propped up last year’s sales fairly well. This year, however, more homes sold than last year, indicating more movement throughout the county. The median sales price rose another 4% this year, coming to $785,000; but the average price fell 10% this year (down to a measly $1,064,000). The average days on MLS is still very high for Boulder County, at 76 days, but is down 5% from last year. We see a lot of seller concessions and other negotiations attached to several contracts, which indicates sellers are interested in unloading their properties. If you’re looking to buy in Boulder, keep that in mind when looking over the property listings and their prices.
Longmont
Longmont is showing slightly different signs than the rest of the metro area. There are several factors to this. The median sales price of a home in Longmont is around $525,000. This is actually down around 2% from last year. This is probably because properties have been on MLS an average of 61 days! Longmont is not used to such long stints on the market and sellers are eager to move on. This opens the doors to buyers in a big way, especially with the affordability of the area. In January, about 20% of the properties sold had price decreases as part of their contract, while many others had considerable concessions.
We could be looking at a situation where, once again, Longmont becomes the jewel of affordability in the area. New housing developments are popping up all over the northern Denver Metro Area still, with opening prices above $550,000 in many cases. This is pushing buyers to look at affordable areas where individuals are selling. Many markets in Denver are begrudgingly listing homes. This is because homeowners are holding onto their 2-4% interest rates on their current loans. They know the 7% interest rates will nearly double their mortgage payments in the Denver metro area. Many property owners are looking to move into cheaper markets, where the cost-of-living is lower and property values fit into their budget. This is opening the door to many buyers in the area.
If you’re looking to buy in the Longmont area, be patient. The spring thaw (though there’s not much to melt) will definitely bring a plethora of properties with it. Your dream home may be a season away! Start planning now: secure your loan, keep your eye on new listings, and speak to your local real estate agent today.
