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Colorado's shifting housing market and what it means for 2023

What to expect if you’re looking to make a change in your home address. A 360 In-Depth look at how Colorado real estate ended 2022 and what it can tell us about the months ahead.
Posted: 4:07 PM, Jan 13, 2023
Updated: 2023-01-24 16:39:16-05
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DENVER — With the new year, many Coloradans are looking at the next 12 months trying to make sense of the ever-changing real estate market in the midst of an uncertain financial picture.

This comes as things really slowed down in December.

So, what can you expect if you’re looking to make a change in your home address? Let's take a deep-dive look at how Colorado real estate ended 2022 and what it can tell us about the months ahead.

In this 360 In-Depth Report, we'll talk about:

  • What the current trends show (Data and stats)
  • Resources if you're looking to stay in your current home
  • Where to find affordable housing
  • Is it a good time to sell?

Let's start with good news in the numbers 📊

After reaching a peak in April 2022, prices are still going down. At the end of the year, the median price statewide for a single-family home was $530,000 after hitting $600,000 in the spring. That means, homes are typically selling for a bit less than asking price.

“We compiled data from every corner of the state and the story is very, very, very similar.” said Matt Leprino, A realtor and spokesperson for Colorado Association of Realtors told Denver7.

“In the Denver Metro area, Telluride Summit, Grand Junction really anywhere that you can go - This is the fifth straight month where we are seeing prices on average closing below 100% of the asking price.”

And that means there are deals to be had.

But Leprino says surprisingly, inventory is still not that high. "It's a great time to look. Unfortunately, with interest rates being a little bit higher, that definitely offsets monthly payments for those folks obtaining a mortgage." said Leprino.

You'll remember this time last year, buyers had to overpay. Since that's not quite the case right now, paying less than asking price can help offset a good portion of the mortgage increase that comes with higher interest rates, Leprino added.

The way some realtors describe where we are right now? Stuck.

"Sellers are stuck in the prices of the past and buyers are stuck with the fear of what the future may hold,” Boulder realtor Kelly Moye said in a release from Colorado Association of Realtors.

“Sellers are learning to price to 2021 numbers and buyers are learning to leverage motivated sellers by requesting concessions to buy down their interest rate. Both seem to be working to keep the market rolling in what typically would be a slow time of year.”

A mix of climbing interest rates and uncertainty about what the financial situation looks like contributed to single-family listings dropping 35 percent from November to December in the metro area, CAR reported.

Across the state, single-family home listings were down 30 percent year over year. For context, that's the lowest figure since 2010.

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If you're looking to sell, how does the market shift look for you over the next few months?

"They're not going to sell their house in hours, it might take days, heck, it might even take weeks." Leprino said.

"But we're still in that 98% of asking price. So still price your home appropriately for the current market and just be a little bit more patient. There's a few less buyers out on the market right now than there was."

For buyers and sellers, it's a more balanced market, at least for a moment, leaving behind some of the craziness of the past couple of years. "They they get to have a little bit more peaceful experience selling their homes."


What about the townhome/condo market right now?

Low inventory has kept the median sales price flat for single-family homes in the state. But in the townhome market, according to CAR's monthly report, the median sales price rose 7.8% in Colorado compared to December 2021.

"And so it's interesting when we see that that the single family house or freestanding house is decreasing and another sector the condo townhouse is going up a little bit." LePrino said.

"So for me, what that tells me is real estate is still transacting, people are just definitely erring on the slightly less expensive property side of things."

Help for homeowners, renters and landlords 🏢

Colorado Housing Connects hotline has taken a record number of calls over the last week because eviction filings are up and some pandemic assistance programs are ending. The program director told Denver7 there are plenty of resources available for renters, landlords and homeowners.

“They can tap into different tools like tenant / landlord mediation, utility assistance, food banks, and some of the existing rental assistance that still will be available to Denver residents.” said Patrick Noonan, Colorado Housing Connects program director. Through their website, you can find resources to help with heating and food costs, energy bill assistance and answers to questions about refinancing and avoiding foreclosure.

You can talk to a housing navigator by phone at 1-844-926-6632 or visit their website for resources at https://coloradohousingconnects.org/

Another affordable housing option is through Rocky Mountain Communities, a 501(c) non-profit with nine low-income housing communities in Denver, Westminster, Arvada, Fort Morgan among other communities.

“We also want to make sure that people have opportunities that a lot of us have. Our focus is making sure that we put services in place. Whether it's through our own services or through our strong community partners that are able to assist people.” said Dontae Latson, President and CEO, Rocky Mountain Communities.

And good news, they have openings right now and you can learn more on their website, Rocky Mountain communities.org, including what you need to qualify.


Are you considering buying or selling a home this year? Share your experience with the Denver7 360 Your Opinion team.

Editor's Note: Denver7 360 | In-Depth explores multiple sides of the topics that matter most to Coloradans, bringing in different perspectives so you can make up your own mind about the issues. To comment on this or other 360 In-Depth stories, email us at 360@TheDenverChannel.com or use this form. See more 360 | In-Depth stories here.

In-depth: Housing sales, affordable housing & housing help

Editor's Note: Denver7 360 | In-Depth explores multiple sides of the topics that matter most to Coloradans, bringing in different perspectives so you can make up your own mind about the issues. To comment on this or other 360 In-Depth stories, email us at 360@TheDenverChannel.com or use this form. See more 360 | In-Depth stories here.