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Colorado’s Real Estate Market In 2023
As a resident of Utah and licensed as an MLO in the surrounding states, I am writing this as an update on what is happening in Colorado as far as real estate.
The average Median home price in 2023 is $575,000. That is down 2.6% YOY (Year Over Year).
The list price received is dropping monthly by approximately 0.5%.
On average, residential homes are on the market for 40+ days. That is up almost 82%.
Closed deals are down almost 24%.
Pending Sales are down 18.5% YOY (Year Over Year).
Supply is up 42.9%.
New listings dropped by 22.5%.Are these numbers telling us seller optimism is down? Or are buyers seeing a balancing of the market?
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The real estate market in Colorado has been dynamic and generally strong in recent years, though it can vary significantly by region. Here’s an overview of the Colorado real estate market as of my last update in 2024:
Overall Market Trend: Colorado’s real estate market has been hot, with high demand and rising prices in many areas. The market has shown some signs of cooling compared to the extreme seller’s market of 2020-2021, but remains competitive in many areas.
Price Trends: Home prices have increased significantly over the past decade, especially in urban and suburban areas. The median home price in Colorado is generally above the national average.
Regional Variations:
Denver Metro Area: Typically the state’s most expensive and competitive market.
Front Range (Boulder, Fort Collins, Colorado Springs): Strong, high-demand markets.
Mountain Towns (Aspen, Vail, Breckenridge): Luxury markets with very high prices.
Western Slope and Eastern Plains: Generally more affordable but with less robust job markets.
Inventory: Many areas have faced low inventory, leading to competitive bidding situations. New construction has increased but has yet to meet demand in most areas fully.
Factors Influencing the Market: Population growth due to in-migration from other states. Strong job market, particularly in tech and aerospace industries. Lifestyle appeal (outdoor recreation, natural beauty). Rising interest rates have started to impact affordability and demand.
Rental Market: Rent prices have also increased significantly in many areas. Thererental demand exists, especially in urban areas and college towns.
Challenges: Affordability issues, especially for first-time homebuyers.
Concerns about potential market corrections or bubbles in some areas.
Outlook: Most experts expect continued growth but at a more moderate pace. The long-term outlook remains positive due to Colorado’s strong economy and desirable lifestyle. However, real estate markets can change quickly, and conditions may have shifted since my last update. For the most current information, consult with a local real estate professional or check recent market reports. Here is a comprehensive article about buying a house in Colorado with an FHA loan:
https://gustancho.com/fha-loans-colorado/
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