Denver home prices haven't budged in years

Rates jump, prices fall — where do we go from here?

It's hard to believe we're already in the fall real estate season! The market has been up, down, and sideways; let’s dive into what’s been happening.

Home prices haven’t risen since 2022

Home prices have been sliding for three months straight, with Denver’s median sale price for single-family homes currently sitting at $635K, down 2.3% compared to last year.

Prices in the Denver region have stayed pretty flat (after adjusting for seasonality) over the last two years as a result of strained affordability. Last month’s median sale price was lower than the same month in 2022.

The Case-Shiller index looks at repeat sales over time; the version below is adjusted for seasonality and gives a more accurate sense of local home values over time.

Sellers slowly returning to the market

Even though many would-be sellers are sidelined by the “golden handcuffs” of a low mortgage rate, we saw a jump in new listings in September.

3,901 homes hit the market, 12% more than last year. The number of homes on the market was 8,673, 16% more than last September.

There is some good news for buyers here: we haven’t had more than three months of inventory since 2013! This is leading to a healthier, more balanced housing market in the Denver area after years of unsustainable growth.

Homes are taking 3+ weeks to sell

Homes are taking longer to sell than in recent years, with the average sitting at 24 days. We don’t expect this number to rise much more as we wrap up the year, but it probably won’t fall either.

Mortgage rates are volatile

Rates took a quick swing up in October after spending September in the low 6s. The uptick came after news of a stronger-than-expected labor market.

Nice update. So what?

Buyers: Deals are out there during the end of the year. Homes may not match your original vision, but sellers whose homes have been sitting for a while are getting antsy. If you find something in a great location with solid potential, this can be a good time to scoop up a deal like our buyer, who purchased this Centennial home for $100K less than its original list price and even managed to negotiate a $10K seller concession for inspection items.

Sellers: If you’re planning to sell in 2024, it’s go time! Once mid-November hits, buyers will retreat for the holidays, except for those savvy opportunists (see above). If your home is in good condition and priced right, there’s still a window to sell this year. If not, it’s probably best to hold off and prep for a January listing.

Thanks so much for reading!