In line with the Census Bureau’s 2021 American Group Survey 5-Yr Estimates, Denver is now the nineteenth largest metropolis in america, with a inhabitants of 711,463, as of 2021. Denver has witnessed dramatic development in current many years. From 1990 to 2021, Denver’s inhabitants elevated by 52.1%, from 467,610 to 711,463. As with cities of the Pacific Northwest and West Coast basically, a lot of Denver’s development over the course of the 2000s and 2010s was on account of a big inflow of Millennials.
Given this substantial development, the Denver housing market skilled a putting rise in house costs and demand. Based mostly on information sourced from Redfin
Learn on to search out out key traits creating within the Denver housing market in 2023.
Denver Housing Market 2023: Overview
Analyzing the information from Redfin, the Denver metro space housing market is displaying indicators of sustained power in some areas whereas additionally displaying indicators of lowering exercise within the cities that make up the Denver metro space. Within the metropolis of Denver correct, house costs peaked in April 2022, when Denver’s median sale worth reached an all-time excessive of $650,000. Since then, costs have declined steadily, in order that by February 2023 (the most recent information accessible on the time of publication), Denver’s median sale worth was all the way down to $556,125.
Residence costs for the complete Denver metro space housing market mirror the sample set by the town of Denver correct. Residence costs within the Denver metro space additionally peaked in April 2022, reaching a median sale worth of $615,000. From there, costs have regularly declined, reaching a median sale worth of $560,000 in February 2023. Nonetheless, house costs within the Denver metro space stay traditionally excessive: Its 12-month common median sale worth for March 2022 to February 2023 was $579,926, and the corresponding determine for the 12-month interval March 2021 to February 2022 was $534,463. In simply
On the opposite finish of the spectrum, the town that skilled the most important year-over-year decline in house costs was Berkley, a suburb northwest of Denver. The 12-month common median sale worth in Berkley for March 2021-February 2022 was $545,150. It then proceeded to say no by 5.8% over the following 12 months, falling to a 12-month common median sale worth of $513,601 for March 2022-February 2023. Evaluating month-to-month house costs year-over-year reveals a good steeper decline: From a median sale worth of $602,000 in February 2022, Berkley’s median sale worth had fallen to $350,000 in February 2023 — a one-year decline of 41.9%.
Under is a desk detailing the median sale costs in cities within the Denver housing market space and their change year-over-year from February 2022 to February 2023:
Whereas nearly all of cities within the Denver housing market have skilled declines of their house costs year-over-year, one must remember that the spree of homebuying that befell from 2021 to 2022 drove costs as much as traditionally excessive ranges. If something, these declines in house costs mirror a common moderation slightly than a collapse. Total, cities within the Denver housing market space all have median sale costs which can be markedly greater than pre-pandemic ranges.
Denver Housing Market: Stock and Days on Market
Usually when there’s a cooling off in housing market exercise, there tends to be a rise in accessible for-sale stock. For the Denver housing market, most cities that make up the Denver metro space have witnessed giant build-ups of their housing stock year-over-year. The desk beneath particulars the change in accessible for-sale stock within the higher Denver housing market:
A further helpful metric for housing market exercise is the size of time a house on the market spends in the marketplace earlier than being purchased up. Redfin denotes this measure as days on market, which represents the month-to-month median days on market a house on the market sits earlier than being taken off the market. Within the Denver metro space, the median variety of days on market of a house on the market rose from 5 days in February 2022 to 35 days in February 2023, equal to an annual improve of roughly 600% — equal to a seven-fold improve in only one 12 months. And for a lot of different locations within the higher Denver housing market space, the median variety of days on market has soared year-over-year:
Denver Housing Market: Properties Bought Above Record Value
Sometimes, when a housing market is scorching, properties are inclined to promote for extra money than their authentic listed worth. Conversely, when housing market exercise slows down, the proportion of lively listings promoting above their checklist worth tends to say no. Within the metropolis of Denver, in February 2022, 63.8% of house gross sales offered above their newest checklist worth. Transfer ahead a 12 months and in February 2023, that share had fallen to solely 27.5% of house gross sales promoting above their checklist worth. Analyzing all the principle cities within the Denver housing market space, this development holds for each single metropolis: