April 2023 Market
April has arrived which means we also have the March Market Trends report from the Denver Metro Association of Realtors. This is a specific report I have access to as a Denver Realtor. Let’s dive in!
The chart below shows all the data for the Denver Metro area. Month over month, we are up everywhere except active listings at month's end, which you would expect if closings are up 22%!
Year over year, you will notice closed homes and median closed prices are down which is also to be expected with the increase in interest rates. As a homeowner, I am happy to see prices are only down 2% year over year and are up 4-5% on a median and average month over month. The Denver market is healthy overall!
Buyers are watching rates closely. Rates are hovering right around 6-6.5% on average. Buyers are more willing and likely to ask for credits to rate buy-downs than negotiate the list price right now. Only 26% of buyers right now are first-time buyers, which is the lowest since the National Association of Realtors started recording data.
Current homeowners/potential sellers are sticking around, especially if they moved in the last few years and have an interest rate under 4%.
Average closed prices are down from the heat of the last year but still holding strong and increasing from some of the major rate hikes in August and around the holiday lull.
On average, closing prices are $731K for detached homes and $473K for attached homes.
Average days in the MLS have really increased from last year to nearly 50 days. Again - buyers are much more discerning with their choices. They don’t have wiggle room in their budgets to make improvements with rate increases.
There are hot spots and cool spots in the metro area.
This map shows months of inventory by zip code. The overall average was 1.06 months of inventory and anything that turns red or orange is under 1 month of inventory signaling possible multiple offers. Areas in green or blue have more inventory giving buyers more negotiating power. Areas that are hot continue to be inner-land-locked suburbs around the inside ring of C-470. Outlying communities and central Denver continue to be cooler than average.
