What does 2023 Hold for Denver’s Real Estate Market?

In some good news for potential home buyers, real estate experts are anticipating a more stable and

balanced climate for Denver’s housing market in 2023. In fact, according to Zillow, of the top 100 metro

areas with the highest expected home price increases Denver comes in at #70. Quite the change from

years past where we were consistently in the top 10 of cities with the fastest increasing prices.

Here’s what else is on the horizon:

1. The market will stabilize

Industry pros expect the first quarter will see slower demand, fewer new listings, and lower inventory. As we move into Q2 will see the transition to lower rates, more demand, and more new listings. Q3 and Q4 will see a return to normalized fall trends as buyers take advantage of homes as they come on the market. Home prices are expected to remain relatively flat in 2023, Zillow data shows.

2. Homebuyers will have more leverage

As the market settles, so will the record-breaking appreciation homeowners have become accustomed to. It may feel like a pull-back or a loss in value, but really it is just normalizing and will provide opportunities for buyers to make more logical choices when making offers on homes.

3. Lower mortgage rates will release pent-up demand

With Redfin and other forecasters predicting a slow decline in rates, there will likely be increased excitement among buyers and sellers alike. This should cause a lot of buyers to get off the fence and to the closing table.

4. Inventory will remain low

New construction will be key to offsetting Denver's already tight housing supply. With so many homeowners opting to stay put, it’s likely to see fewer move-up buyers volunteering to sell and leave their low interest rate mortgages.

5. Competition will heat up midyear

We’ll likely see increased competition come into play toward the middle of the year and beyond. Buyers who are looking for the best deal at a slower pace would do well to get their ducks in a row sooner than later.

What will the new year hold for you and your home buying or selling goals? There’s only one way to find out. Give Metrowest a shout today and let’s discuss your options!