Colorado Market Trends Overview

According to the January 2023 Market Trends Housing Report and analysis from the Colorado Association of Realtors (CAR), both home buyers and sellers are feeling the effects of the Federal Reserve’s interest rate hikes designed to help curb inflation and slow the market.

Housing prices across the Denver-metro area and state continued to fall slightly as buyers struggle to justify higher monthly payments and weakened buying power, while sellers, locked into lower interest rates, aren’t seeing the value of a move just yet.

Although the combination of factors has led to some nice bumps in active inventory and months supply of inventory, overall inventory still is extremely low across most price points. Supply and demand is helping keep prices from falling significantly, which has kept many buyers on the sidelines while others are getting a little more time to consider a purchase, make offers and complete inspections.

The average days on market has doubled or more in the metro area and has increased by roughly 60% statewide compared to the same time last year. On the flip side, in some markets across the metro area and state, bidding wars have re-emerged after taking a few months off, demonstrating once again the local variables across all product types and price points.

Metrics from the data revealed:

Statewide:

• Median price for a single-family home is identical to January 2022 at $520,000.

• Average Days on Market goes from 35 last year to 60 in January 2022.

• Sales fell 30% from January 2022 with 3,441.

Seven County Denver Metro Area:

• Median price for single-family and condo/townhome combined is down 1.4% over last year, $525,000 vs $531,000. That is the first year-over-year decrease since December 2019.

• Average Days on Market more than doubles from last year, 50 days in January 2023 vs 22 days in January 2022.

• There is four times the months supply of inventory from this time last year, 1.2 months vs. 0.3. At the same time, new listings fell from 4,300 to 3,709.

If you’re a motivated buyer or seller, now could be the right time to make a move. Or at least begin preparing to start. Considering buying or selling this winter or early spring? Contact Metrowest today and let’s discuss your options!