Metro Denver Real Estate Market Update – End of Year 2023

Our market update for the metro Denver area for 2023 is broken down into All Residential, as well as Luxury Residential stats.

Below are links to download our update, as well as a breakdown of the stats in more detail:

• Metro Denver Area Residential Market Update
• Metro Denver Area Residential Luxury Market Update
• Metro Denver Area Residential Market Update Detailed Stats

Metro Denver Area Residential Market Update

This is one of our favorite times of the year, as we reflect on the Real Estate Market and the challenges and accomplishments of 2023! We enter this New Year of 2024 with excitement and anticipation for better times and markets ahead. You could say we have a “Cautious Optimism for 2024, which is much better than the Predictable Pessimism” we experienced in 2023!

The Denver Real Estate Market was a challenge in 2023, and here are the major stats from the close of the year as follows: Active inventory is up 4.5% year over year, but it’s up 236% from two years ago. New listings were at 49,560, which is down 17.7% from last year. Closed properties were at 41,840, which is down 18% from last year. The average price for all residential homes was $679,710 and the average price for single family detached homes was $764,977 and the average price for dttached homes ended the year at $477,985.

The biggest surprise in these numbers is the big drop in numbers of homes sold, and yet the average prices in all three categories were only down less than 1%! Many Economists and experts predicted we would see a drop in prices from 5-20%. The Denver market and economy have proven to be very resilient when we discuss prices, however rising interest rates, inflation and affordability pushed thousands of Buyers and Sellers to the sidelines and hit the pause button in 2023!

We are actually very optimistic for this 2024 market, and cherish the opportunity to be your Real Estate Professional and assist with all of your housing needs! Let’s Make It A Great Year!

Metro Denver Area Luxury Market Update

Overall 2023 was a great year for the luxury market in the metro Denver area. While the overall number of sales were down by approximately 20%, prices saw moderate increases, reflective of a more balanced market between buyers and sellers.

• For properties priced between $1M and $1.5M there is an approximate supply of 1.8 months of homes on the market and the average days on the market was 44.
• For properties priced between $1.5M and $2M there is an approximate supply of 3 months of homes on the market and the average days on the market was 71.
• For properties priced between $2M and $3M there is an approximate supply of 5.6 months of homes on the market and the average days on the market was 85. 5.6 months supply would be considered an ever buyer/seller market.
• For properties priced between $3M ant $4M there is an approximate supply of 11.5 months of homes on the market and the average days on the market was 60.

25% of all new listings in December in the $1M+ price range went under contract in 7 days evidencing that there is still a strong market for nicely appointed homes in good neighborhoods that are priced well.

For homes that didn’t sell in the first 7 days on the market and made a price reduction the average price reduction was 8%. These numbers right here evidence that pricing is critical for Sellers and that there are still opportunities in the market for Buyers who are willing to do some updating on properties.