Home » Real Estate » Metro Denver Real Estate Market Update – May 2023
Metro Denver Area Market Update
Real Estate

Metro Denver Real Estate Market Update – May 2023

Our market update for the metro Denver area for May 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

Since the beginning of the year, we have predicted that the first half of the year would be challenging with some uncertainty in the market and hurdles to jump over! As we close out our Spring market, and reflect on these challenges, we can see much of the Real Estate market failing to engage in a normal Spring behavior!

Many have predicted that we have Shadow Inventory about to enter the market, with some pent up demand for Sellers that need to sell, and it seems that many Sellers are in love with their current mortgage rate and not quite ready to list their homes.

This lack of Inventory has created some Shadow Demand, as Buyers are experiencing some fatigue and either waiting for the perfect home or to uncover a good deal and what they perceive as good value!

Here is some Good News! The numbers are starting to show our second prediction that the second half of the year will be much more active! Active Listings at the end of May are at 5,228 which is 13% higher
than April!

New Listings in May are up almost 9% from April! Pendings are up almost 3% and Closings in May were up almost 7% from April!

Average Prices for all Residential Homes were up 2.7% from April! The question now is: What is the cost of waiting?

Sellers: If you have been hesitant to enter the market, now is a great time as the Summer buying activity will be in full swing!

Buyers: Inventory is growing, Sellers are getting more realistic and we should see a downward trend with Interest Rates!

AVERAGE DAYS ON MARKET MAY 2023 21 DAYS 2022: 9 DAYS UP 133.33% 24 DAYS 2022: 9 DAYS UP 166.67%

ACTIVE INVENTORY MAY 2023 3,720 2022: 2,828 UP 31.54% 1,508 2022: 824 UP 83.01%

3,652  5,228
MAY 2022  MAY 2023
UP 43.15%  UP 43.15%

-2.22% CONDO 1 YEAR

SOLDS MAY 2023 2,900 2022: 4,134 DOWN 29.85% 1,267 2022: 1,714 DOWN 26.08%

TOTAL # SOLD (HOUSES & CONDOS – MAY 2023) 4,167 LAST YEAR: 5,848 DOWN 28.74%

AVERAGE SALES PRICE (HOUSES & CONDOS – MAY 2023) $697,534 LAST YEAR: $714,148 DOWN 2.33%

Metro Denver Area Luxury Market Update

The luxury market is heading in a positive direction from the spring selling season.

While the total number of properties closed is down from last year prices are holding strong with almost a 2% increase over this time last year. Likely due to reduced inventory in almost every neighborhood.

While days on the market have increased for single family homes to 22 days this year over 12 days this time last year and 42 days over 14 days last year for attached homes many sellers are still getting list price or over list price for good properties priced well.

Unfortunately for sellers that are being too aggressive with their initial list prices the market is necessitating price reductions in many cases. In some zip codes as many as 50% of listings are seeing price reductions before going under contract.

For sellers this simply emphasizes the importance pricing correctly from the first day on the market. For buyers there are some great opportunities with properties that have had price reductions.

AVERAGE DAYS ON MARKET MAY 2023 22 DAYS 2022: 12 DAYS UP 83.33% 42 DAYS 2022: 14 DAYS UP 200.00%

NEW LISTINGS MAY 2023 702 2022: 766 DOWN 8.36% 83 2022: 106 DOWN 21.70%

TOTAL # SOLD (HOUSES & CONDOS – MAY 2023) 501 LAST YEAR: 755 DOWN 33.64%

AVERAGE SALES PRICE (HOUSES & CONDOS – MAY 2023) $1,610,035 LAST YEAR: $1,579,678 UP 1.92%

-0.98% CONDO 1 YEAR

TOTAL SOLDS YTD MAY 2023 1,609 2022: 2,328 DOWN 30.88% 202 2022: 264 DOWN 23.48%