Denver Real Estate Statistics 2022-2023
- The average closing price of residential homes in September 2022 was $671,024
- In December 2021, the housing interest rates went down to 3 – 3.5% on average
- Home values shot up 5% since this time last year
- 1462 homes in Denver were sold in October 2021 compared to 849 units in 2022 October
- 30 years mortgage rates are currently 7% in December 2022
- Country Club is the most expensive Denver Neighborhood $1,778,447
- Around 60% of Denver’s home sellers lowered their asking price in July 2022
- On average, homes appreciated 8.42% year-over-year in 2022
- The average median home prices in Denver shot up 19.1% in 2021
- Active home listings in Denver increased to 8,990
- October 2019 saw 8,557 available homes compared to 7683 in October 2022
Denver Real Estate Stats Explained
The largest number of Colorado’s employers stay in Denver City, making the city the most active and the biggest in the Mountain West. According to the Denver Metro Association of Realtors Market Trends Committee report of October 2022, the city experienced the highest average and median closing prices in September. The median recorded for the residential, detached, and attached units were $580,000, $632,000, and $410,000, respectively. The data was based on 11 counties, including Boulder, Adams, Broomfield, Arapahoe, Clear Creek, Douglas, Denver, Elbert, Jefferson, Gilpin, and Park County.
In 2022 when interest rates started shooting up, there was a shift in the white-hot market. This change caused sellers to become more conservative regarding home prices. Prospective home buyers dropped their bid to purchase houses in Denver because of the high rates that made the territory too expensive, with some institutions asking for interest rates as high as 7.5%. Currently, sellers still in the market in 2022 are experiencing less completion.
More Denver Real Estate Facts
In the closing months of 2022 and early 2023, the Denver real estate marketplace is slowly becoming more balanced. The inventory has since been increasing in the final quota of 2022, even as sellers still wait for the New Year to list their houses. By the end of November 2022, detached homes dropped to 4,572, a 16.02% decrease from October 2022. On the other hand, active homes went down 8.94% to 1681.
On average, homes in Denver receive up to 2 offers, and most sell in only 19 days. The average home price in Denver was about $575,000 in November. It is an increase of around 6.3% since 2021. This currently translates to $345 per square foot. In December of last year Denver’s average price per square foot was down 2.9%. In October 2022, only 849 homes were sold compared to a staggering 1462 last October, according to the Denver Metro Association of Realtors Market Trends Committee report.
30-year mortgage rates in Denver were 6.4% in early December 2022 compared to 7% in October 2022. The spring market will be the utmost indicator of what to expect in the sale of homes in Denver come 2023. Nevertheless, the real estate landscape continues to show stability. The median price of a home unit now is around $565K. Attached homes are currently $615K, while townhomes and condos sell at $410K, as reported by the housing association committee. The new average listing stays on the market for approximately 34 days, a 127% increase from a year ago.
Denver is the most expensive neighborhood at $1,778,447 according to Zillow Homes Value Index, followed by Hilltop at $1,670,551. On the other hand, the least expensive neighborhood is Windsor at $265,784, followed by DIA at $363,014. Denver’s housing market will likely crash soon since new residents continue to stream in, whereas there is a housing shortage against the demand. This is one of the top cities for remote workers, raising the demand for housing.
Home sellers need to realize 100% of their asking price. On average, 98.9% of homes were sold off the listing price in September 2022. You cannot compare this with 101.9 homes sold at the listing price in September 2021. Approximately 60% of those who sold their homes in July 2022 dropped their prices because they had been sitting in the market for too long. In September, homes sold for an average of 26 days compared to the same time in 2021, where they sold for only 13 days. Though one might think that the market is crashing, it is self correcting. After the looming holiday season, home sellers expect to see prices flatten.
In 2022 buyer demand has severely cooled compared to the same time last year in Denver. This has seen home buyers enjoying more buying options even with the pain of high mortgage rates notwithstanding. It calls for sellers to adjust their expectations to survive the current demand landscape. The interest rates will go down once inflation is under control.
In 2021, the median home prices in Denver rose 19.1%, drawing closer to the national average. Home prices are directly connected to the effects of the COVID-19 pandemic. These include the lower borrowing cost by financial institutions and other government stimuli that have led to home listings that last for too long. Supply and demand differences have led more home sellers to hike their asking prices. It is expected that home prices will continue escalating in the future until the housing demand outweighs the supply in Denver.
In Colorado, specifically Denver, the median sales and housing inventory are up compared to roughly the same time in 2020 and 2021. Active listings in Denver increased to 8,990, a 72.8% increase from November last year. The slowdown in Denver’s housing market is more pronounced in 2022 due to high-interest rates and the economic uncertainty of 2023. Even so, there is nothing to fear because consumers still purchase houses even at the current high-interest rates.
Denver continues to experience more for-sale signs than it did in November and December 2021. By the end of November, 7,290 homes were on the listing. These included duplexes, condos, and stand-alone homes. This is compared to September 2022, when there were 7683 homes for sale, up to 116% from the same time in 2021. Compared to October 2019’s listing, the list of available homes was still much less in October 2022.
“For-sale signs are up, and Denver metro real estate sales volume is down more than $1.2 billion” – Denverite, the Denver site!