Colorado Real Estate News

Denver Market Trends

The end of 2022 forecasts a continued return to market balance through 2023.

The number of new homes that entered the market in December decreased from November by 35 percent. Throughout the year inventory had gradually increased, resulting in homes staying on the market slightly longer before going under contract. However, days on market have not increased enough to signify an end to a seller’s market. In December, the median days in the MLS were 30, up from 21 in November and up from five days in December 2021. Market balance is generally considered when there are 4 months of inventory available. Year-to-date, the total number of listings in 2022 was 60,164, down 9.30 percent from 2021. As a result, the total number of closed properties in 2022 was 50,743, down 20.84 percent from 2021. Inventory remains relatively low against demand.

The increase in interest rates and decrease in buyer demand impacted home prices.

The median sale price for detached homes in December was $600,000, down 2.44 percent from November and 0.01 percent from December 2021. For both detached and attached homes, the peak median sale price for 2022 occurred in April, $680,000 and $440,000, respectively. Sellers are more mindful of pricing correctly and buyers are feeling more empowered to negotiate.

The Luxury Market saw a 97.61 percent close-price-to-list-price, down 2.99 percent from last year.

While there was less inventory from the prior month and from one year ago, homes stayed on the market a little longer, giving buyers more time to shop for the home they wanted to purchase. Sellers had to be patient in December as homes took 10 days more to sell than the previous month and 19 more days than one year ago at 28 median days in MLS. This was down 55.56 percent from the prior month and 211.11 percent from one year ago. This is a good sign that buyers are able to take time making decisions while many sellers are still able to secure a contract in under a month.

While homes were taking a little longer to sell, sellers received 5.69 percent more for their homes from the month prior.

While buyers took their time shopping for detached luxury homes, sellers also had time to relax because detached luxury homes took 28 median days to sell. This was up 44.44 percent from the month prior and 225 percent from one year ago. Last December, the median days in MLS was eight days. Even though homes stuck around longer in December 2022, luxury sellers received six percent more per square foot from the month prior and 3.63 percent from one year ago.

*Updated as of January 4, 2023