There are many resources for you to dig into Colorado real estate market trends, but what better place to get trusted metrics from than a trusted real estate professional who specializes and works daily in the Denver real estate market? I enjoy providing my clients with any kind of helpful resource or data I can, so as part of an ongoing series from Colorado Home Realty (CHR), I’m going to start sharing market recaps every month so you can know where we stand so you can make the best decision for you and your circumstances. Even if you’re not looking to buy or sell your home anytime soon, you might just like analytics and be curious about what the Colorado real estate market looks like. I’m going to share helpful stats like average sales prices, average days on the market and concessions all related to the Denver market. Lets take a look at what happened in Denver as part of a year-end market recap:
- What were sales price trends in 2022?
- For a detached single family home:
- The average sold price of a detached single-family residence ended 2022 at $716,908, flat compared to the end of 2021 at $712,701. Average prices month to month fluctuated throughout the year with a low of $655,023 in January and a high just a few months later in March of $830,729.
- The Average for all Property Types (IE: condos, townhomes, homes)
- The average sold price of all property types ended 2022 at $640,608, or 2.8% higher than the end of 2021 at $622,987. The average month to month price fluctuated with a low of $579,941 and a high of $737,476.
- Compared to 2019 and the pandemic era, the end of 2022 saw on average a 13.1% decline in average sales price from the year’s high in March. Uniquely, we saw this same pattern in 2019 with a 12.2% decline in average sales price from $511,046 to $449,169
- For a detached single family home:
- What were the Days On Market trends in 2022?
- For single family homes in the last month of 2022, the days on market for Pending (under contract) properties jumped to 60.49 days.
- In 2021, the average days on market was 22.74 days and in 2019 the average days on market was 44.85 days. Based on this, homes are on the market longer which is another sign of a market cool down which isn’t a bad thing as homes that sell quickly tend to go for over the asking price.
- When we look at all housing types (IE: condo, townhomes, etc) days on market (including those that have not yet gone under contract) is now at 106.82 days. This is compared to 64.35 days last year. Note: this includes outlier properties like new construction that take 12 months to build but are marketed early in the construction process.
- For single family homes in the last month of 2022, the days on market for Pending (under contract) properties jumped to 60.49 days.
- What did showings look like in Denver in 2022?
- The last week of the year 2022 outpaced 2021 by a slim margin, likely demonstrating slightly increased buyer engagement due to lower interest rates from the peak of 7% 8 weeks ago.
- Showings per listing dropped to 1.32/week.
- Showings per executed contract jumped to 21.63 per contract. This equates to approximately 16 weeks or 4 months of average marketing time.
- What was the Denver housing inventory like in 2022?
- As we’ve discussed before, inventory also greatly impacts valuation and ultimate sell price. Inventory of all property types continued its seasonal decline to 4,753 in December, compared to 1,386 year over year.
- As we’ve discussed before, inventory also greatly impacts valuation and ultimate sell price. Inventory of all property types continued its seasonal decline to 4,753 in December, compared to 1,386 year over year.
- What happened to price reduction trends in 2022?
- In 2022, 56.8% of all properties have now experienced a price reduction. This compared to 20.1% year over year and 44.6% in 2019.
- 76.3% of all properties are selling for less than the asking price and 78.2% of detached properties. This is compared to 34.3% for both categories one year ago. In 2019 it was at 68.1%.
- Seller Concessions ended December averaging $5,118 per contract.
Overall: The Denver real estate market saw a massive adjustment in the second half of 2022. As we know, the primary factor driving the market shift was interest rates which rose in 2022, along with the inflation trends we saw overall across the country. This slowed things down as a sort of market correction, but one that was needed and welcomed as many buyers were priced out of the market.
Going forward into 2023, we anticipate the consumer price index (the primary measure of inflation) to decline next month. This means rates most likely will decline again. With relatively low inventory and a likely decline in interest rates, real estate prices are most likely stable nationally and I project the Denver market to see modest first-half appreciation.
Do you enjoy reading market trends like I do? Are you in the market to buy or sell your home? Call and text me at (720) 323-4176 or email me at [email protected]
