A Recap of 2023 Denver Real Estate

How did the real estate market in the Denver area close out 2023? Let’s look at December numbers before evaluating the entire year.

In December, we saw the average home price remain relatively stable at $657,229, only .51% lower than November. Surprisingly, the average closed price was still 3.32% higher than last December.

At an average of 46 days, we also experienced longer days on the market prior to going “pending”… 21% longer than November!

The number of closed transactions declined 7.65% from November, while pending transactions dropped 5.29%.

How did the Denver real estate market perform overall in 2023? Take a look at the table below for reference.

There were 10,629 less listings to hit the market in 2023 than 2022.

Most notably, the number of closed transactions dropped significantly….. 9,176 less than 2022. That is 34% less than 2020/2021 and 18% less than last year.

It took on average 14 days longer for a home to sell. We all could feel that!

But surprisingly, the average closed price was almost identical to 2022, only lower by about .16%!

Despite all of the challenges our real estate market experienced, it remained resilient. Forecasted drops in home prices locally for 2023 were in the 4-6% range according to some experts. But that didn’t happen in the market as a whole. There was thankfully no massive fallout…meaning our homeowners’ equity was protected overall.

What’s expected in 2024?

A more favorable interest rate environment should bring more buyers and sellers to the market.

The State demography office expects 40,000 more people to move to Colorado in 2024. Some areas may not see changes but some like Denver, Arapahoe, and Douglas counties are expected to see additional growth in excess of 3,000 new residents.

With that, we should see the number of home sales grow in the 2.5 to 4.5% range in 2024.

So far we’re seeing activity surge in our local market. People are making moves. We just had our first client go under contract for 2024 last week. We’ve been making referrals to agents in areas out of state like Utah, Arizona, and Alabama. We’re seeing multiple offers again on listings.

What does this mean for you?

If you’ve been considering a change, it might make sense to start a pre qual with a lender to see what you could qualify for and what that monthly payment looks like (I can connect you with a trusted lender). With more listings coming to the market in the coming weeks, don’t be caught off guard if your dream home pops up.

If you’ve been interested in selling your home, at least take the first step to figure out what your home’s estimated list price could be (hint: talk to me). You don’t have to commit to actually selling of course, but at least you’d have a data point to work with as you decide what’s best. Be ready.

I’m here to help!

I would love the opportunity to brainstorm with you about your real estate goals and dreams for 2024.

Just send me a quick note and we can line up a time to chat. 

If you’re curious about searching for real estate in Colorado or Florida, check out the search pages here on my site. :) 

-Drew