Denver Real Estate Market Update - February 2023

The residential real estate market in Denver, Colorado, in February 2023 was marked by several significant trends and developments. In this blog post, we will delve into these trends, exploring what is driving them and what they mean for buyers and sellers in the Denver market.

1. Rising Prices

One of the most significant trends in the February 2023 Denver residential real estate market was the continued rise in home prices. This trend has been ongoing for several years, but it shows no signs of slowing down. In February 2023, the median home price in Denver was $550,000, up from $525,000 in February 2022. This represents an increase of 4.8% in just one year.

There are several factors driving the rise in home prices in Denver. One of the primary drivers is the strong demand for housing in the city. Denver is one of the fastest-growing cities in the United States, with a population growth rate of 1.8% in 2022. This growth is fueled by a strong job market, with many high-paying jobs in the technology, finance, and healthcare sectors.

Another factor driving the rise in home prices in Denver is the limited supply of housing. The city has a low vacancy rate, with just 3.1% of rental units available in 2022. This limited supply of housing is driving up demand and, in turn, driving up prices.

1. Limited Inventory

Another significant trend in the February 2023 Denver residential real estate market was the limited inventory of homes for sale. This trend has also been ongoing for several years, and it is contributing to the rise in home prices in the city. In February 2023, there were just 3,000 homes for sale in Denver, down from 3,500 in February 2022. This represents a 14.3% decrease in inventory in just one year.

There are several reasons for the limited inventory of homes for sale in Denver. One reason is that many homeowners are choosing to stay in their homes longer. With rising home prices, many homeowners are hesitant to sell their homes because they are afraid they will not be able to afford a new home in the city.

Another reason for the limited inventory of homes for sale in Denver is the lack of new construction. While there is some new construction in the city, it is not enough to keep up with demand. This limited new construction is contributing to the limited supply of housing and driving up prices.

1. Competitive Market

The limited inventory of homes for sale in Denver is contributing to a competitive market for buyers. In February 2023, homes in Denver were selling quickly, with the average home staying on the market for just 23 days. This is down from 30 days in February 2022.

In a competitive market, buyers must act quickly to secure a home they are interested in. This can mean making an offer above the asking price, waiving contingencies, and even offering cash. Buyers who are not prepared to compete in the market may find themselves struggling to find a home that meets their needs.

1. Luxury Market

Another trend in the February 2023 Denver residential real estate market was the strength of the luxury market. Luxury homes, defined as homes priced at $1 million or above, were selling quickly and at record prices. In February 2023, the average sale price for a luxury home in Denver was $1.8 million, up from $1.5 million in February 2022.

The strength of the luxury market in Denver is driven by several factors. One factor is the strong job market in the city. High-paying jobs in the technology, finance, and healthcare sectors are attracting wealthy buyers to the city. Another factor is the lifestyle that Denver offers.