The Colorado housing market has been in a state of flux over the past few years due to the surge in demand for homes. This has led to an increase in home prices across most regions of the state, making it difficult for buyers to find their dream homes. On the other hand, it has been a seller’s market, with more buyers than houses, resulting in prices being driven up.
The Colorado housing market in September 2023 presents a mixed bag of statistics, according to the Colorado Association of Realtors. While the average sales price is surging, the increase in days on the market and the decline in closed and pending sales indicate a shifting landscape. Buyers and sellers should stay informed and adapt to the changing dynamics in the Colorado real estate market.
The median single-family home price in Colorado reached $600k for the first time in April of last year and has now dropped to $579,999. In Sept 2023, the median price in the Colorado housing market (statewide) was up 2.7% year-over-year. This is good news for buyers who may have been priced out of the market in the past. Here’s the data for all properties including SFH and Condos.
Colorado Housing Market Report – September 2023
- In September 2023, the median price in the Colorado housing market (statewide) was $575,000.
- The Average Sales Price in Colorado was $762,585, up 12.3% year-over-year.
- Percent of List Price Received has dropped to 98.7%.
- Average Days on Market Until Sale = 46, up 24.3% year-over-year.
- Closed sales were down by almost 22.6% from last year.
- Pending sales were down by 5.8% from last year.
- Months supply was up by almost 12% to 2.8 months, which is a sign that Colorado is a seller’s real estate market.
- New Listings decreased by 14.1% year-over-year, which shows a decrease in seller optimism.
Median Price
The median price for properties in the Colorado housing market, on a statewide level, stood at $575,000. This figure gives us a glimpse into the pricing landscape that potential buyers and sellers are navigating.
Average Sales Price
The Average Sales Price in Colorado experienced a significant 12.3% year-over-year increase, reaching $762,585. This substantial rise in average sales price signifies the robust nature of the Colorado real estate market.
Percent of List Price Received
One noteworthy change was the 98.7% Percent of List Price Received. This metric indicates the percentage of the listed price that sellers are receiving for their properties. While still strong, this number has seen a slight decrease.
Average Days on Market Until Sale
The Average Days on Market Until Sale increased by a significant 24.3% year-over-year, reaching 46 days. This change suggests that properties are staying on the market for a longer duration, potentially offering more negotiation time for buyers.
Closed Sales
Closed sales in the Colorado housing market were down by almost 22.6% compared to the previous year. This decline in closed sales indicates a shift in the market dynamics, which could be influenced by various factors.
Pending Sales
Pending sales were also down by 5.8% year-over-year. This statistic reflects properties that are under contract but have not yet closed. The decrease in pending sales might signify changes in buyer demand.
Months Supply
The months supply of homes on the market increased by almost 12% to 2.8 months. This uptick in months supply is indicative of a seller’s real estate market in Colorado, where there is a balance between supply and demand, favoring sellers.
New Listings
New Listings decreased by 14.1% year-over-year. This decline in new listings showcases a decrease in seller optimism, possibly due to market conditions or other external factors affecting their decisions to list their properties.
Colorado Housing Market Predictions 2023-2024
The Colorado housing market is always of great interest to both buyers and sellers due to its unique mix of urban and rural areas, stunning landscapes, and diverse economy. Zillow, a well-known real estate information company, provides valuable insights into the Colorado housing market. Let’s examine the latest data and predictions as of September 30, 2023, to gain a better understanding of the state of real estate in Colorado.
Current Market Data
As of September 30, 2023, the average home value in Colorado stands at $535,928. This figure reflects a 2.7% decrease over the past year, indicating some price adjustments in the market.
Properties in Colorado typically go pending in approximately 16 days, highlighting the brisk pace of real estate transactions in the state.
Other significant statistics include:
- Median sale to list ratio (August 31, 2023): 1.000
- Percent of sales over list price (August 31, 2023): 33.8%
- Percent of sales under list price (August 31, 2023): 41.1%
- Median days to pending (September 30, 2023): 16 days
Top Places in Colorado with Expected Price Increases by 2024
Zillow also provides insights into areas within Colorado where home prices are predicted to rise the most by the end of September 2024. Here are the top regions and their expected price increases:
- Steamboat Springs, CO (MSA): Expected to increase by 6.6%
- Edwards, CO (MSA): Expected to increase by 5.6%
- Glenwood Springs, CO (MSA): Expected to increase by 4%
- Craig, CO (MSA): Expected to increase by 4%
- Durango, CO (MSA): Expected to increase by 3.2%
- Montrose, CO (MSA): Expected to increase by 2.8%
- Grand Junction, CO (MSA): Expected to increase by 2.7%
- Cañon City, CO (MSA): Expected to increase by 2.3%
- Pueblo, CO (MSA): Expected to increase by 2%
- Sterling, CO (MSA): Expected to increase by 1.7%
These predictions offer valuable insights for both buyers and sellers, helping them make informed decisions in the Colorado real estate market. Keep in mind that real estate markets are dynamic and can be influenced by various factors, so staying up-to-date with the latest data and predictions is crucial.
Will the Colorado Housing Market Crash?
The Colorado housing market has experienced a significant surge in demand and price appreciation during the past two years, making it a challenging environment for buyers to find affordable homes. However, there are signs that the market may be slowing down, with decreased sales, increased inventory, and longer time on the market. The forecast for the next year predicts a continued slowdown in price appreciation and sales volume, but it is still expected to remain a seller’s market.
One significant factor that could impact the Colorado housing market’s future is the state’s economy. Colorado’s economy has been robust, with low unemployment rates and a thriving tech industry, attracting a large number of people to the state. However, if the economy were to take a downturn, it could lead to a decrease in demand for homes and a subsequent drop in prices. Additionally, rising interest rates could also affect the housing market, making it more expensive for buyers to obtain mortgages and leading to a decrease in demand.
While there is always a risk of a market crash, it is unlikely to happen in the current scenario. The Colorado housing market has shown resilience to economic fluctuations in the past, and its diverse economy and job growth make it less vulnerable to sudden changes. Furthermore, the state’s population growth is expected to continue, which will keep the demand for homes high.
In conclusion, the Colorado housing market has been a challenging environment for buyers in recent years, with high prices and limited inventory. While the market may be slowing down, it is still a seller’s market, and prices are expected to continue appreciating, albeit at a slower pace.
Factors such as the state’s robust economy and population growth suggest that the housing market is unlikely to crash in the current scenario, but rising interest rates could lead to a decrease in demand and a subsequent drop in prices. Therefore, it is essential to keep an eye on economic indicators and market trends while making any real estate decisions in Colorado.
References:
- https://www.zillow.com/co/home-values/
- https://www.recolorado.com/buy-sell/market-trends/
- https://fred.stlouisfed.org/series/ACTLISCOUCO#
- https://coloradorealtors.com/market-trends/regional-and-statewide-statistics/