What to Expect from Colorado’s Housing Market in 2023

As the new year gets underway, many Coloradans are looking to 2023 and trying to make sense of the ever-changing real estate market in the midst of as we deal with an uncertain financial picture.

So, what can you expect if you’re looking to make a change in your home address? Let’s take a look.

The good news for buyers:

After reaching a peak in April 2022, prices are still going down. At the end of the year, the median price statewide for a single-family home was $530,000 after hitting $600,000 in the spring. That means homes are typically selling for a bit less than asking price.

According to the Colorado Association of Realtors (CAR), who compiled data from every corner of the state, said the story is very, very, very similar across Colorado. In the Denver Metro area, Telluride Summit, Grand Junction, this is the fifth straight month where they are seeing prices on average closing below 100% of the asking price.

Somewhat surprisingly, inventory is still not that high. Matt Leprino, CAR spokesperson said it’s a great time to look, but unfortunately, with interest rates being a little bit higher, it offsets monthly payments for those folks obtaining a mortgage.

You’ll remember this time last year, buyers had to overpay. Since that’s not quite the case right now, paying less than asking price can help offset a good portion of the mortgage increase that comes with higher interest rates, Leprino added.

What about sellers?

The overarching theme this year is pricing and patience. Sellers shouldn’t expect to sell their house in hours. It might take days or even weeks.

Still, Leprino says sellers are receiving offers within 98% of asking price. So it’s important to price your home appropriately for the current market and just be a little bit more patient.

For buyers and sellers, it’;s a more balanced market, at least for a moment, leaving behind some of the craziness of the past couple of years.

If you’re looking to buy or sell in 2023, it’s important to have a strategy in place. Give Metrowest a shout today and let’s discuss your options!