Denver Metro Market Watch: May 2023

The Denver Metro area housing market has experienced a slowdown in May 2023, despite being in the peak home buying season. Affordability remains a concern for buyers due to rising mortgage rates and elevated home prices. This article provides an overview of the key highlights and statistics from the Denver Metro housing market in May 2023.

May Market Stats Denver and Foothills

Housing Market Trends

Decrease in Fresh Listings

The number of new listings that entered the market in May was 25% lower compared to the previous year. Homeowners, taking advantage of lower mortgage rates below 6%, are choosing to stay in their current homes rather than listing them for sale. However, there was a 10% increase in new listings from April to May, with 12% of them priced at $1 million or higher.

Closed Listings

Median Closed Price

The median closed price for homes in the Denver Metro area is 3% lower than the previous year. However, there has been a consistent increase in median closed prices over the past four months. In May, homes closed at 99.5% of the list price, indicating a slightly advantageous market for buyers over sellers.

Closed Listings

Increase in Leased Properties

The rental market in the Denver Metro area saw a significant increase in demand. In May, there were 44% more properties leased compared to the previous year. The median leased price for these properties was more than 7% higher than the previous year, although the leased price per square foot was lower.

Market Statistics

Closed Listings

The number of home closings in the Denver Metro area decreased by 24% in May 2023 compared to the previous year. However, there was a 12% increase in closings from April to May, indicating continued strong demand from homebuyers.

Closed Prices

The median closed price of homes in the Denver Metro area in May 2023 was 3% lower than the previous year. However, there was a 3% increase in median closed prices from April to May, and prices have been steadily increasing since the beginning of the year, with a 10% increase since January.

Days in MLS

In May 2023, homes in the Denver Metro area were actively available for sale for a median of 6 days. This is 2 days longer than the same period last year but 2 days shorter than the previous month.

Days on Market

New Listings

There was a 25% decrease in new listings compared to the previous year, as sellers opted to hold onto their homes with lower mortgage rates. However, there was a 10% increase in new listings from April to May, indicating a potential increase in supply.

New Listings

Pending Listings

The number of listings pending closing in May 2023 decreased by 24% compared to the previous year. However, there was a 2% increase in pending listings from April to May, suggesting ongoing buyer activity.

Active Listings and Volume

The standing inventory of homes actively available for sale at the end of May 2023 was 16% higher than the previous year. The gross sales volume in May was 26% lower than the previous year due to the decrease in closings.

Rental Market Statistics

Increased Leased Properties

In May 2023, the number of properties leased using REcolorado MLS increased by 44% compared to the previous year. Single-family residences accounted for 47% of the leased properties.

Median Leased Price

The median leased price for properties in May 2023 was 7.5% higher than the previous year. However, both the median leased price per bedroom and the median price per square foot experienced year-over-year decreases.

Glossary of Terms

• Median: The middle value or the most commonly occurring value in a dataset, not affected by outliers.
• Average: The sum of all data points divided by the total number of data points.
• Days in MLS (DIM): The number of days a listing has been in an Active status in REcolorado Matrix.
• Weeks of Inventory: A measure of how long it would hypothetically take to sell all available homes, reflecting market conditions.
• Year-over-year: Comparing data from the current year to the same month of data one year prior.
• Month-over-month: Comparing data from the current month to the previous month’s data.
• Year-to-date: Summing all data points from the start of the year to the current date, useful for analyzing trend lines.
• Denver Metro Area: Includes Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park counties.
• Residential Data: Data used for REcolorado Market Watch reports, including single-family residences, condos, townhomes, and multi-family homes.

Denver Metro housing market in May 2023 experienced a decline in new listings and closed prices compared to the previous year. However, there were signs of increased buyer activity with higher pending listings and a shorter time on the market. The rental market saw a significant increase in demand, leading to higher leased prices.