Metro Denver Residential Real Estate
Here is a summary of the current real estate market conditions in the Denver, Colorado metropolitan area:
The Denver housing market has seen robust growth in recent years driven by a strong local economy and an influx of new residents from other states. However, the market has begun cooling slightly in 2022 and 2023 as mortgage rates have risen significantly, slowing home sales and price growth.
Key points about the current Denver metro real estate market:
- Home prices rose rapidly from 2020-2021, with the median price up over 21% to around $580,000. Price appreciation has slowed in 2022-2023 but remains relatively high.
- Home sales set new records in 2020 and 2021 during the pandemic, fueled by low mortgage rates. But higher interest rates have dampened sales, which are expected to decline year-over-year.
- Inventory remains extremely tight, with less than a month’s supply of homes on the market. This shortage of homes available continues to put upward pressure on prices.
- Mortgage rates have jumped over the last 12 months from 3% to over 7%, significantly reducing buyer affordability and causing many to delay home purchases.
- Denver’s strong economy and job growth drive ongoing population and housing demand, especially among millennials looking to buy homes. However, higher costs are pricing some buyers out of the real estate market, primarily first-time home buyers.