Denver has long been known as one of the best real estate investment destinations in the United States. The city has a strong economy, many job opportunities, and an abundance of affordable and luxury housing. Denver is also well known for its arts, entertainment, outdoor recreation, and health and wellness scenes. More people are moving into Colorado than out, meaning the housing market should be active. So let’s look forward to what the Denver housing market may look like in 2023.

The Colorado real estate market has been a roller coaster throughout 2022. The year started hot, with sellers primed for optimum success. Interest rates were low, and many buyers were demanding homes, a carryover of the trends from 2021. In January 2022, Metropolitan Denver had fewer houses on the market than usual due to high demand, allowing sellers to raise prices. Despite the higher prices, properties sold very quickly. In the latter half of 2022, the market started to cool off due to an increase in mortgage rates, pushing many investment-focused buyers to leave the housing market.

Sellers who already had homes listed began to see a bit of hesitancy from homebuyers in the second half of 2022 as many waited for mortgage rates to decline. Sellers considering putting their houses on the market suddenly decided to wait a little longer. This loss in inventory resulted in a balance in Denver’s marketplace. However, some sellers are currently feeling more pressure to sell their homes as they have been sitting on the market for longer than they may have expected. This state of neutrality inspires sellers to lower prices or find a form of compromise with buyers so both can achieve their goals.

By the end of September 2022, there were still 93% more active listings (both attached properties and detached houses) on the market in Denver and its metropolitan area compared to September 2021. As of 2022, the median price for homes, according to the Denver Metro Association of Realtors, is $632,000: roughly 2% less than the month prior but almost 10% higher than the same time the previous year. Attached properties, such as condos, row houses, or apartments, came to a median price of $410,000.

There were 649 new residential luxury homes ($1 million and over) listed in the Denver metropolitan area in September 2022. On average, luxury homes sold for 98% of their listing price; in other words, the luxury market is in control.

Meanwhile, in the signature homes ($750,000–$999,999) category, 809 homes were newly listed, with sellers recouping an average of 99% of their total asking price. The market for premier market homes ($500,000 – $749,999) shows more of the same. The market comprised 2,138 new listings in September 2022, and those that sold that month recouped 99% of listing prices collectively.

As these rates continue to fall, working with an experienced real estate professional will be increasingly important to ensure that you receive market value for your home in the coming months.

Many external factors are affecting the real estate market in the United States, which will also affect the local market for Congress Park, Denver real estate. We are experiencing shortages and complete disruptions in construction and home improvement supplies such as lumber and concrete. This results in the slowing of construction of new homes and, in some areas, a total stoppage. With the rise in mortgage rates, many experts predict that the markets will continue to slow as we creep closer to 2023. Experts at Morgan Stanley predict home prices in the United States may fall 7% by December 2023, while researchers with Goldman Sachs, Moody Analytics, and Wells Fargo suggest declines will be closer to 5%.

Interest rates could decrease in 2023, especially as the election cycles bring new bodies into governing seats. This does not necessarily mean that you should wait to buy a new home in hopes the rates might go down. As the market neutralizes, home prices will stabilize, and inventory will increase again. The increase in interest rates may balance out because of the lower home prices, causing an equalization in your bottom-line expenses. If you find a house you love today, you should seriously consider buying it. One of the benefits for buyers on the market currently is that you do have more time to consider your purchase because competition has lessened.

Sellers should know that quality matters now as people are working from home more frequently and looking for functional, comfortable spaces that they truly love. Renovations should focus on warm, soft aesthetics and smart designs that use every inch of a home’s square footage efficiently. Buyers are not going to be as focused on a property’s price per square foot as much as they are on the overall feel and quality of the house. Buyers in the current market are more likely to be purchasing a home because they wish to live in a specific neighborhood or to make a move for purposeful reasons, less for idle investment purposes. Sellers must meet those needs if they are seeking an easy sale with a full closing price.

The good news for buyers and sellers is that luxury real estate in Denver never goes out of style. There are many gorgeous high-end homes for sale in Congress Park, Denver, waiting for the right buyer. With the help of experienced real estate professionals like those at The Modern Agents, you can step forth into the Denver housing market, knowing that you have every tool at your disposal to succeed. To start your real estate journey today, contact Chad Johnerson.