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May 2023 Market Update

The Denver real estate market showcases resilience and adaptability as the summer season unfolds, despite mortgage rates ticking above 7% and limited inventory challenges. While the market may feel slightly different, buyers and sellers remain optimistic and committed to navigating the current landscape. 

New listings rose 8.87% compared to April, making 5,180 new properties available. Although this figure represents a decline of 23.94% from last year, it’s important to note that historical data over the past decade indicates that inventory typically ranges in the mid-7,000s during this time of year. Closed sales also showed encouraging growth, with a 6.71% month-over-month increase for 4,167 transactions. Additionally, the median sales price rose to $595,000 from $580,000, reflecting continued appreciation in property values. Although the median days on the market increased slightly to six days, compared to four days in the same period last year, it still indicates a competitive market.

Discerning Buyers

Buyers are approaching the market with patience and a discerning eye, as the limited inventory has led to a more thoughtful decision-making process. While active listings rose by 13.16 percent month-over-month and 43.15 percent year-over-year to reach 5,228, indicating a slower absorption rate, this presents an opportunity for buyers to thoroughly evaluate available options. Sellers, in turn, are demonstrating flexibility by considering price adjustments and addressing inspection items in multiple-offer situations, facilitating smoother transactions.

The Denver real estate market remains nuanced and location-specific, particularly for single-family homes. Property sales can vary significantly across different neighborhoods. While some homes receive multiple offers and sell above the asking price, others require a more strategic approach, including price adjustments, to attract buyers. This environment offers opportunities for both buyers and sellers.

Interest Rates

Throughout the year, interest rate fluctuations have been closely monitored. Although there may be predictions of potential rate decreases later in the year, it’s essential to focus on the present and make informed decisions based on individual circumstances. This dynamic rate environment has many buyers and sellers making real estate decisions out of necessity rather than preference.

With a positive outlook and a resilient spirit, the Denver real estate market is well-equipped to navigate the unique challenges of the summer season. While considering the cost of waiting is essential, it’s worth noting that the market continues to move, and opportunities are still available. Buyers who are patient and diligent in their search will find properties that match their needs, even in a competitive environment. On the other hand, sellers can leverage the current market dynamics to position their homes strategically and sell for the best price at favorable terms.

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