According to the latest report from the Denver Metro Association of Realtors, the Denver housing market remains tight for buyers. The report shows that there is still a shortage of properties available for purchase in the area, making it challenging for prospective homebuyers to find the right home.

Despite the expectation that home prices would drop in 2023, the report shows that month-to-month home prices continue to rise. The median price of homes in Denver is currently at $562,500, with houses priced at $600,000 and condos, duplexes, and other attached units priced at $400,000.

The report also indicates that while the real estate market is still considered a “seller's market,” many sellers are holding off on listing their properties in the hope that interest rates will drop. Sellers who do have homes on the market continue to lower their prices to attract buyers who are increasingly selective in their search for the perfect property.

One area of the market that saw a significant rise in February is the “Luxury Market,” which includes homes priced at over $1 million. There were nearly 61% more luxury homes on the market in February, totaling 494 homes in total. This market is showing no signs of slowing down, with both detached and attached homes enjoying significant appreciation month-over-month and year-over-year.

Despite the increase in available inventory in the “Classic Market,” which includes homes priced between $300,000 and $500,000, there is still a significant shortage of workforce housing in the area. This market represents roughly one-third of the real estate inventory and is where working people are most likely to find a home within their price range.

Realtors on the Market Trends Committee note that the inventory shortage is felt most significantly in the Classic Market, with only 1.06 months' worth of properties available to sell. This shortage is making it increasingly difficult for working people to find affordable housing in the Denver area.

As spring rolls in, we are hoping to see more inventory on the market. If you’re thinking of becoming a homeowner in 2023 the time to start planning is now. Give Metrowest a shout today – we’d love to discuss your options!