According to a recent report from Norada Real Estate Investments, the Colorado housing market has been in a state of flux over the past few years due to the surge in demand for homes. This has led to an increase in home prices across most regions of the state, making it difficult for buyers to find their dream homes.

The housing market exhibits clear indications of being a seller's market. With a median price of $549,950 and an Average Sales Price of $703,502, both experiencing significant year-over-year growth, sellers hold a favorable position. The Percent of List Price Received standing at 98.1% further emphasizes the demand, making it apparent that sellers are receiving close to their asking prices.

Moreover, the month’s supply remains unchanged at 2.1 months, according to the Colorado Association of Realtors This figure, below the typical equilibrium point, signifies a scarcity of housing inventory. In essence, potential buyers face heightened competition, contributing to the seller-centric nature of the market.

How we are doing currently:

·       In December 2023, the median price in the Colorado housing market (statewide) was $549,950.

·       The Average Sales Price in Colorado was $703,502, up 8.7% year-over-year.

·       Percent of List Price Received has increased to 98.1%.

·       Average Days on Market Until Sale = 61, up 8.9% year-over-year.

·       Closed sales were down by almost 6.6% from last year.

·       Pending sales were up by 11.7% from last year.

·       Months supply was unchanged to 2.1 months, which is a sign that Colorado is a seller's real estate market.

·       New Listings decreased by 3.9% year-over-year, which shows a decrease in seller optimism.

Contrary to a decline, the data reveals a robust upward trajectory in home prices within the Colorado housing market. The 8.7% year-over-year increase in the Average Sales Price, reaching $703,502, is a testament to the sustained appreciation of property values. This upward trend suggests a market where home prices are not only stable but flourishing.

Considerations for buyers:
The decision to buy a house depends on various factors, and the Colorado housing market presents a nuanced scenario. With the market favoring sellers, potential buyers should be prepared for competitive conditions and the possibility of paying close to the asking price. However, the stability in home prices and the increased supply reflected in the 2.1 months of inventory suggest a market that, while competitive, provides opportunities for those looking to make a purchase.

If becoming a homeowner in 2024 is one of your goals, we’d love to help. Reach out to one of the experienced professionals at Metrowest and let’s get the process started!