What The Denver Housing Market Looks Like As We Get Deeper Into 2023

Based on the Census Bureau’s 2021 American Neighborhood Survey 5-12 months Estimates, Denver is now the nineteenth largest metropolis in the US, with a inhabitants of 711,463, as of 2021. Denver has witnessed dramatic progress in latest a long time. From 1990 to 2021, Denver’s inhabitants elevated by 52.1%, from 467,610 to 711,463. As with cities of the Pacific Northwest and West Coast generally, a lot of Denver’s progress over the course of the 2000s and 2010s was resulting from a big inflow of Millennials.

Given this substantial progress, the Denver housing market skilled a putting rise in house costs and demand. Based mostly on knowledge sourced from Redfin
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, the 12-month common (March 2022 to February 2023) median sale value for a house in Denver is $584,548. That’s up 46.2% over the past 5 years, from a 12-month common (March 2017 to February 2018) median sale value of $399,804. Nevertheless, like many different housing markets throughout the US, rising mortgage charges in 2022 helped contribute to a cooling off housing market exercise, comparable to rising ranges of housing stock, in a number of of the cities that comprise the Denver metro space.

Learn on to seek out out key developments growing within the Denver housing market in 2023.

Denver Housing Market 2023: Overview

Analyzing the information from Redfin, the Denver metro space housing market is displaying indicators of sustained energy in some areas whereas additionally displaying indicators of lowering exercise within the cities that make up the Denver metro space. Within the metropolis of Denver correct, house costs peaked in April 2022, when Denver’s median sale value reached an all-time excessive of $650,000. Since then, costs have declined steadily, in order that by February 2023 (the newest knowledge accessible on the time of publication), Denver’s median sale value was all the way down to $556,125.

House costs for the complete Denver metro space housing market mirror the sample set by the town of Denver correct. House costs within the Denver metro space additionally peaked in April 2022, reaching a median sale value of $615,000. From there, costs have steadily declined, reaching a median sale value of $560,000 in February 2023. Nonetheless, house costs within the Denver metro space stay traditionally excessive: Its 12-month common median sale value for March 2022 to February 2023 was $579,926, and the corresponding determine for the 12-month interval March 2021 to February 2022 was $534,463. In simply
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one yr, the 12-month common median sale value within the Denver metro space elevated by virtually $100,000: From $452,050 for the interval March 2020 to February 2021, as much as $534,463 for the interval March 2021 to February 2022.

On the opposite finish of the spectrum, the town that skilled the largest year-over-year decline in house costs was Berkley, a suburb northwest of Denver. The 12-month common median sale value in Berkley for March 2021-February 2022 was $545,150. It then proceeded to say no by 5.8% over the following yr, falling to a 12-month common median sale value of $513,601 for March 2022-February 2023. Evaluating month-to-month house costs year-over-year reveals a good steeper decline: From a median sale value of $602,000 in February 2022, Berkley’s median sale value had fallen to $350,000 in February 2023 — a one-year decline of 41.9%.

Under is a desk detailing the median sale costs in cities within the Denver housing market space and their change year-over-year from February 2022 to February 2023:

Whereas nearly all of cities within the Denver housing market have skilled declines of their house costs year-over-year, one must understand that the spree of homebuying that occurred from 2021 to 2022 drove costs as much as traditionally excessive ranges. If something, these declines in house costs mirror a normal moderation quite than a collapse. Total, cities within the Denver housing market space all have median sale costs which are markedly larger than pre-pandemic ranges.

Denver Housing Market: Stock and Days on Market

Usually when there’s a cooling off in housing market exercise, there tends to be a rise in accessible for-sale stock. For the Denver housing market, most cities that make up the Denver metro space have witnessed massive build-ups of their housing stock year-over-year. The desk under particulars the change in accessible for-sale stock within the better Denver housing market:

A further helpful metric for housing market exercise is the size of time a house on the market spends in the marketplace earlier than being purchased up. Redfin denotes this measure as days on market, which represents the month-to-month median days on market a house on the market sits earlier than being taken off the market. Within the Denver metro space, the median variety of days on market of a house on the market rose from 5 days in February 2022 to 35 days in February 2023, equal to an annual enhance of roughly 600% — equal to a seven-fold enhance in only one yr. And for a lot of different locations within the better Denver housing market space, the median variety of days on market has soared year-over-year:

Denver Housing Market: Properties Bought Above Listing Value

Usually, when a housing market is sizzling, properties are inclined to promote for more cash than their unique listed value. Conversely, when housing market exercise slows down, the proportion of energetic listings promoting above their checklist value tends to say no. Within the metropolis of Denver, in February 2022, 63.8% of house gross sales offered above their newest checklist value. Transfer ahead a yr and in February 2023, that proportion had fallen to solely 27.5% of house gross sales promoting above their checklist value. Analyzing all the primary cities within the Denver housing market space, this pattern holds for each single metropolis:

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