According to US News and World Report, Denver has secured its position as the hottest housing market in the nation. The analysis, based on the U.S. News Housing Market Index, meticulously examines various factors shaping the real estate landscape.

The Denver-Aurora-Lakewood Metropolitan Statistical Area (MSA) emerges as the frontrunner with a remarkable score of 74.8. This reflects a notable 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 burgeoning 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 a distinctive 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.

As Denver grapples with the delicate balance between demand and supply, it is likely that prices will maintain their elevated status both locally and nationally until a substantial increase in supply becomes available for sale. The city's housing market journey remains a captivating tale, marked by challenges and successes that resonate on a broader real estate landscape.

Denver isn’t the only city in the spotlight on the national housing stage, with three additional cities making their mark in the top 20. Fort Collins claims the 12th spot, followed by Greeley at 15th, and Colorado Springs securing the 19th position.

If you’re interested in becoming a homeowner in 2024 or exploring any of the areas on this list, there’s no time like the present to start looking. Reach out to one of the experienced professionals at Metrowest – we’d be happy to show you around!