In January 2023, home prices in Colorado were up 1.9% compared to last year, selling for a median price of $546,200. On average, the number of homes sold was down 31.5% year over year, and there were 3,807 homes sold in January this year, down from 5,577 homes sold in January last year. The median days on the market was 53 days, up 27 years over year.
Are there enough homes for sale to meet buyer demand?
In January 2023, there were 19,618 homes for sale in Colorado, up 22.6% year over year. The number of newly listed homes was 5,590 and down 23.9% year over year. The average month of supply is 3 months, up 2 years over year.
How competitive is the market?
In January 2023, 16.9% of homes in Colorado sold below list price, down 29.0 points year over year. There was a 97.9% sale-to-list price, down 3.3 points year over year. There were only 30.7% of homes that had price drops, up from 7.0% of homes in January last year.
Where are people moving to and from?
Nationwide, 25% of homebuyers searched to move to a different metro area between Dec ’22 – Feb ’23. The top 5 states homebuyers searched to move to were Florida, Texas, Arizona, Tennessee, and South Carolina. At the same time, California, New York, the District Of Columbia, Illinois, and Massachusetts were the top 5 states homebuyers searched to move from.
Of all the major U.S. metros, Miami was the most searched-for destination among homebuyers looking to relocate between Dec’ ’22 – Feb ’23. Next came Phoenix, Las Vegas, Sacramento, and Tampa. San Francisco was the most searched-for destination among homebuyers looking to leave, followed by New York, Los Angeles, Washington, and Chicago.
Colorado Housing Market Predictions 2023
The pace of the Colorado housing market has slowed down. Growth has slowed in the previous five months, while mortgage rates have reached 20-year highs. However, the forecasts still expect that the Colorado housing market will continue to experience price increases in 2023, albeit slower than in the past two years. The market is now among the most expensive in the nation.
Due to the surge in demand for homes during the last two years, home prices have increased in most regions throughout the state. It has increased the difficulty of finding a home to call your home. There are more buyers than houses, resulting in a seller’s market that drives prices up. According to the Colorado Association of Realtors, the median Colorado single-family home price topped $500k for the first time in April last year and reached $545,000.
- In November 2022, the median price in the Colorado housing market (statewide) was $545,000, up +2.8% year-over-year.
- The Average Sales Price in Colorado was $717,642, up 5.2% year-over-year.
- The percentage of List Price Received has dropped to 98.0%.
- Days on Market Until Sale = 46, up 17 days year-over-year.
- Closed sales of single-family homes were down by almost 41% from last year.
- Months supply was up by almost 100% to 2.0 months, which signifies that Colorado is a seller’s real estate market.
- Inventory of Active Listings increased by 67.8% year-over-year.
- New Listings decreased 24.2% year-over-year, showing a decrease in seller optimism or a seasonal slowdown.
Low inventory and ever-soaring prices continue to impact affordability. Even Colorado Springs is in the strongest seller’s market that we have ever seen. In November 2022, the median list price of homes in Colorado Springs, CO, was $449.9K, trending up 7.1% year-over-year, according to Realtor.com.
What’s Next for the Colorado Housing Market?
Housing market forecasters predict that home prices will keep rising in Colorado. As a buyer, the longer you wait to purchase a property, the more it will cost you due to the rising home prices. As a seller, price appreciation is great news for your home’s worth. It also shows that your home’s worth will likely increase after purchasing it. This makes it historically a wise investment and an effective inflation hedge. Again, rely on a professional to determine the optimal circumstances for selling your home and purchasing your new home.
The number of available homes for sale is expected to increase in Colorado. As a buyer, having more housing inventory for sale is excellent news. Remember that the housing supply is still limited, so be prepared to act quickly and make your best offer. If you’re a home seller, you should prepare for more competition as more homeowners enter the housing market.
Demand directly affects home prices, which, according to real estate experts, isn’t going away anytime soon. However, they are not rising as quickly as they once did, and Colorado real estate agents predict that prices will level off or rise slightly this year. Some of this is most likely due to rising interest rates.
Colorado’s housing supply needs to be better than a balanced real estate market. A six-month supply has historically accompanied moderate price appreciation. Construction has slowed for much of the pandemic due to labor shortages and supply-chain issues that have made certain materials challenging to obtain.
Get Connected With A Trusted Real Estate Professional
The Colorado housing market is experiencing a strong seller’s market with high demand, low inventory, and increasing home prices. While this is good news for sellers, it can make it challenging for buyers to find and purchase the right home.
Working with a Homes Of Rockies, who can help navigate this competitive market and find the right home for your needs and budget is important. We specialize in real estate negotiations, brokerage, property investment, property management, and leases.