Metro Denver home sales volume for 2023 lagged behind the totals for the past three years but nearly matched 2019’s sales.

According to the December update from the Denver Metro Association of Realtors, total sales volumes for the past five years show that 2023’s sales dropped less than 1% from 2019 but 18% from 2022 and 28% from 2021.

• 2023: $28.4 billion

• 2022: $34.7 billion

• 2021: $39.3 billion

• 2020: $33.3 billion

• 2019: $28.7 billion

During the pandemic, home sales skyrocketed as interest rates hit record lows and buyers competed over limited inventory, pushing prices to record highs. Bidding wars pushed home prices well over list price as buyers snapped up properties sometimes within hours of listing.

The promise of big paydays combined with the job’s flexibility lured new agents to the business.

However, as high-interest rates caused sales to stagnate, many agents may choose to pivot again to another career.

High-interest rates depress the market

Homeowners with low mortgage rates had little incentive to sell. People who otherwise would move to a new neighborhood, move up to more space, move closer to the mountains, or move to add another bedroom are staying put.

Nationally, 92% of homeowners with a mortgage are locked into a rate under 6%, 82 percent are under 5 percent, and 62% are below 4 percent. That’s a striking difference with a rate in the upper 7s or low 8s.

Looking ahead to 2024

Most industry insiders agree this year will be like 2023, with higher interest rates continuing to depress housing availability. By and large, Denver, is still a lifestyle-driven destination. People will continue to move here and will need housing. The good news here is that we anticipate the lack of inventory will continue to help prices stay stable.

If you’re considering becoming a homeowner in 2024, there are opportunities out there. Reach out to Metrowest today and let’s go over your options!