Has Denver secured its spot as the hottest real estate market in the country? According to U.S. News and World Report, the answer is yes. The analysis, based on the U.S. News Housing Market Index, carefully examines various factors shaping the real estate landscape.

The Denver-Aurora-Lakewood Metropolitan Statistical Area (MSA) emerges as the frontrunner with an impressive score of 74.8. This reflects a 7-point increase compared to the previous year, underlining the city's sustained growth and attractiveness in the real estate sector.

The report identifies several factors contributing to Denver's red-hot housing market. Noteworthy among them is the region's commendably low unemployment rate, minimal mortgage delinquencies, and a low rental vacancy rate. However, a significant challenge surfaces in the form of an insufficient housing supply, acting as a counterforce to the surging demand.

The housing market index takes into account critical metrics, including supply and demand. Denver faces a glaring issue with the supply of homes struggling to meet the increasing demand. This is measured by the number of months it would take to exhaust all existing listings. As of December 2023, Denver's housing supply could last only 1.9 months, trailing behind the national average of 2.6 months.

Despite the high demand, Denver experiences an interesting scenario in its median sales prices. After reaching a peak of $595,000 in June, the median price sees a decline, settling at $550,000 by the year-end. However, this dip is marginal, marking only a 0.2% year-over-year decrease. In contrast, the national median sales price witnesses a 4.0% year-over-year increase, emphasizing Denver's premium standing with a median price approximately 36% higher than the national average.

Colorado also boasts three additional cities in the top 20. Fort Collins claims the 12th spot, followed by Greeley at 15th, and Colorado Springs securing the 19th position. This collective success positions Colorado as a real estate powerhouse.

If you’re relocating to Colorado or just looking for a new neighborhood, contact Metrowest today – we’d be happy to show you around!