Everything You Need to Know About the Current Denver Real Estate Market

Denver is the perfect combination of city life and natural wonders, where urban sophistication and outdoor adventure meet. The Mile High City brings natural attractions, creative craft breweries, tantalizing restaurants led by renowned chefs, and scintillating music venues together in one place. One never needs to travel too far to reach Colorado's iconic Rocky Mountains.

It's understandable why the demand for Denver luxury homes grew so much during the pandemic, leaving some buyers with their dream homes in a gorgeous city. The current real estate market is paving the way for possibility, so let's discuss what you can expect to see in the Denver real estate market.

Denver's housing market is seeing an influx of homes and a mild increase in prices. The Denver Metro Association of Realtors (DMAR) recently reported that March 2023 saw 4,515 homes for sale — a 19.53% rise in inventory month over month. This abundance means that buyers can enjoy more options than ever before.

According to the DMAR, the median selling price in January was $565,000, which is a 0.44% increase from February’s statistics. The average closing price is also up by 1.44%. On average, it took 37 days for a home sale to complete, which is 23% faster than last month.

Don't be fooled into believing the Denver housing market is headed for a crash this year; there's no need to worry. The indicators suggest that it is merely returning to much-needed normalcy. Rising mortgage rates have returned a volatile market to stability, and there is a shift back toward a buyer's market. While it is unlikely Denver will see a return to a full buyer's market this year, conditions will still continue to favor buyers more than they have in recent years. Due to an increase in the amount of supply on the market, buyers now have more time to assess and compare homes.

After more than ten years of skyrocketing prices, Denver's housing market is taking a turn for the better for buyers. Average prices are finally beginning to level out and create a favorable time to buy property in the city.

Buyers should consider that home prices in Denver real estate remain higher than the national average and are still fairly pricey from a historical perspective. Fortunately, there are several first-time homebuyer programs in the state of Colorado available to offer assistance with down payment costs that can make the purchase more budget-friendly through loans or grants.

Homes continue to be sold quickly, but not as quickly as they've been selling in previous years. Currently, homes sell with an average listing period of 37 days due to low supply and high demand, even as the market continues to stabilize.

If you're in the market for a house now, consider actively bidding on Denver homes. With inflation and mortgage rates on the rise, it's unlikely that house prices will decline any time soon. While the housing market is beginning to return to normal, it's still in the early stages of a market correction.

For discerning buyers in the luxury market for properties worth more than $500,000, their patience may pay off. These Denver luxury homes are seeing some of the most considerable price reductions, a boon to patient shoppers who want quality and value. 

As mortgage rates remain steady, hesitation is growing among some buyers, which means that pricing power slowly shifts back into the hands of buyers in 2023. All those looking to purchase top-tier housing options can expect greater savings when it comes time to make an offer, as many sellers may be willing to negotiate on price if they’re aiming to sell more quickly.

In Denver, the market is still competitive, and many sellers have made a good amount of equity and can easily move up to their next dream home. Now is an opportune time for those that are considering selling their property while conditions remain ideal — the area’s appeal is at an all-time high, and inventory levels still remain quite low. With the average number of days in the MLS dropping, sellers can expect more expedient sales and perhaps increased competition among buyers.

Realtors are seeing a surge in the amount of buyers requesting home inspections before closing on a property. While pre-closing assessments have become commonplace, many individuals with winning bids have chosen to bypass this step due to skyrocketing demand and limited inventory.

For sellers intent on getting their homes off the market quickly, it may be wise for them to list conservatively at first. Lower listing prices could encourage prospective buyers to make higher offers or abandon certain contingencies so they can move into their new home sooner rather than later.

The DMAR 2023 market report suggests that median home prices in Denver hit an all-time high in April of 2022, and home prices have only continued to decrease since then. Even with the current market trend of leveling out prices for Denver real estate, Denver is still seeing high demand from outside buyers looking to move to this glorious city. Sellers may continue to benefit from this influx and appeal. 

Denver is the epicenter of excitement in Colorado with sports, concerts, parks and culture. If you're looking for Denver luxury homes, contact expert real estate agent Jennifer Stuckey today to start your search. As a luxury North Denver real estate expert, Jennifer is ready to guide you in your home search or help you sell for the highest offers possible. Contact Jennifer when you’re ready to get started toward all your Denver real estate goals. Read her Buyers Guide here.