The Denver housing market in August 2023 demonstrated a delicate balance between demand, pricing, and inventory. There was a slight dip in the median closed price and a reduction in home closings compared to the previous year; however, the market exhibited resilience, especially in the luxury segment.

Inventory constraints continued, influencing the pricing trends, and posing challenges for prospective buyers. As the market dynamics continue to evolve, staying informed about these trends is crucial for both buyers and sellers to make informed decisions in the ever-changing real estate landscape.

The median closed price of a home in the Denver Metro area continued its recent trend, seeing a slight dip for the second consecutive month after reaching its peak in June. The market has been characterized by strong demand, not allowing buyers much room to negotiate prices. Homes closed at a solid 98% of the asking price in August.

The number of home closings experienced a seasonal uptick from July to August. However, compared to the previous year, there were 12% fewer closings. This is due to the combination of strong home prices and higher interest rates, which deter some buyers. Notably, the luxury market, defined by homes priced at $2M or more, showed resilience with a remarkable 31% increase in closings year over year.

While new listings ticked up slightly from the previous month, the overall inventory levels in the Denver Metro area remained low, down 7% from last year. Homeowners hesitated to trade their low mortgage rates for new homes, contributing to this trend. The $500,000-$600,000 price range witnessed the freshest listings.

The median closing price for a Denver Metro area home in August was $582,700, showing a 1% increase from the previous year. After peaking in June, home prices experienced two consecutive months of slight decreases.

Fall going into winter isn’t traditionally the most popular time to become a homeowner. But sellers who list this time of year are generally very motivated. If now is the right time for you to buy, give Metrowest a shout and let’s explore your options!