March 2023 Denver Real Estate Market Update
Spring is here! And with it, the March 2023 Denver Real Estate Market continues to show steady growth in both inventory and sales. The total inventory of available homes in the Denver area has increased significantly since March 2022. And, typical of the Spring market, there is more activity.
More homes are coming onto the market. Inventory has increased over 100% since last year and we are well above the record lows of 2019. This is a positive trend for buyers, as it means there are more homes to choose from. However, inventory remains below March 2019 and March 2018. Even with the increase in inventory, the Denver real estate market is still considered a seller’s market. There are more homes to choose from, but overall demand continues to outstrip supply. While new listings are up over year, they were down 15% from last month. It will be interesting to watch the continued trend of homes coming on the market. Many potential sellers are experiencing the phenomenon known as the ‘‘Mortgage Rate Lockdown’. *This is a term explaining that, due to the historical interest rates homeowners locked into @ 2- 3%, some homeowners simply can’t justify moving and thus losing their amazing interest rate, only to pay 6-7% interest rates on a new home. While current homeowners have plenty of equity built up in their homes, they simply will not sell & then buy again, at double the mortgage rate.
Interestingly, this is the first month that average purchase price is down year-over-year. Compared to March 2022, average closed purchase price decreased by 5%. But overall, pricing is stabilizing. Sellers are finally accepting the current market for what it is. Only 37% of homes listed for sale lowered their price, compared to 58% of homes in November. Closed price was 99.82% of list price, down 6% compared to last year’s frenzy, but up compared to last month and very close to 100% of what sellers are asking for. Across the board, sellers are getting better at finding a fair and competitive market price.
The slowing of prices increases over the last year is welcome relief to potential buyers, especially first-time home buyers. Similar to price, the average number of days increased year-over year, but was also down over last month. This is indicative of the increased activity of the Spring market, as buyers want to get in their homes before the school year. Homes going under contract in March will translate into closings in May. We expect to see continued activity for the next few months, peaking in early summer.
Overall, the Denver Real Estate market remains strong, with the increasing activity we would expect in a Spring market. It will be interesting to see what the rest of the year has in store. As always, buyers and sellers should work with a professional real estate agent who can help them navigate the latest market trends and make informed decisions based on their individual needs and goals. At CJV Real Estate, it’s what we do best! Reach out and let us know how we can help today!