Denver Housing Market Update: February 2023
The Denver housing market is starting to see healthy spring indicators with increased buyer demand and confidence. This is your Denver housing market update for February 2023, and this is “My Denver View.”
Builder and Buyer Confidence Improves
For the first time in a year, builder confidence has improved, and mortgage applications have seen a significant increase in the last few weeks. With interest rates dropping in January 2023, the number of homes going under contract pending has increased significantly, indicating that demand is back.
Inventory Drops in January 2023
In the 11 counties surrounding the Denver metro area, we saw about 4,100 properties come on the market at the beginning of February. This number is down from the previous month and year. It is even from January 2020, which would have been the last normal January.
Homes Closed in January 2023 in Denver
In January 2023, about 3,300 properties went under contracort pending in the Denver housing market, which is down from the previous month and year. The number of homes closed in January was about 2,000, which is also down from the previous month, year, and even from January 2020.
Average Sold Price Rises in Denver
The average sold price in January was $626,311, which is up from the previous month and year and a significant jump from January 2020!
Interest Rates Flattening Out
Interest rates are down from December but up three points from a year ago. We expect them to flatten out sometime after March and hover around 5.5-6.5%.
Days on Market Returns to Normal
The average days on market is 46 days, which is up from a year ago but back to the normal market days of 2020, 2019, and 2018.
Will Home Prices Drop in 2023 in Denver
People are saying that prices in Denver are going to drop drastically, but the key to understanding the trend is to look at the differentiation between inventory and closed properties. If the yellow and blue lines continue to stay close, we can expect pricing to flatten or increase depending on the demand. However, if they invert as they did in the mid-2020s, prices will increase drastically again. Right now those two lines are way too close to have price drops. Especially, as we move into the height of the selling season. The Denver housing market is going to get exciting, don’t wait for prices to drop, you’ll be out of luck.
Affordability in Denver Housing
Denver was ranked the eighth most expensive city in the nation. People from California and New York who move here are sometimes surprised that they aren’t getting more for their money. It’s important to keep an eye on affordability in Denver.
This Denver Housing Market Update February 2023 tells us, the inventory is too low to be a normal market. In the last 2 weeks of the month, our showings rose drastically indicating that we are moving into the spring market quickly.
If you want to know what is happening weekly in the Denver housing market I release the stats and my opinions weekly on my Instagram, Facebook, and YouTube pages. Follow along and feel free to message or comment anytime!
If you’re interested in a specific neighborhood, price range, or house style, message me, and we’ll start looking and talking about what’s most important to you.