Denver Market Insights: October 2023

Nov 8

Mortgage Rates and Rising Home Prices

As a seasoned real estate agent and contractor in Denver, I understand our current market's challenges and opportunities, especially for those looking to upgrade to a luxury home or move into one of Denver's highly sought-after neighborhoods. October 2023 has been a pivotal month, marked by high mortgage rates and elevated home prices.

The national average 30-year mortgage rate hit a 23-year peak by the end of October, as reported by Freddie Mac. This rate spike is a critical factor influencing the Denver metro housing market. Concurrently, the median price for homes in Denver nudged up by 2%, reaching $580,000. This price increase, along with the elevated mortgage rates, resulted in a slowdown in home sales for the second consecutive month.

RE/Colorado Market Watch Statistics Grid — Image Source: RE/Colorado Market Watch October 2023 Report

Sales and Listings: A Detailed Look

In the Denver Metro area, home closings in October fell by 6% compared to last year. This decline contributes to an overall 19% drop in home sales year to date, compared to the previous year. Despite these challenges, Denver Metro sellers put 3,803 new listings on the market in October, only slightly down by 1% from last year and 17% from last month.

Silver Linings and Opportunities

On a brighter note, buyer activity showed signs of revival in October. The number of listings moving to Pending status in the MLS increased by 1% from last year and 5% from the previous month. This increase is a positive indicator, especially for sellers. Listings now stay on the market for a median of 17 days, allowing inventory levels to gradually increase. By the end of October, there were 7,538 listings actively available for sale.

The Rental Market: A Brief Pause

The rental market in Denver took a slight pause in October. The REcolorado MLS data shows 294 properties were leased, a decrease of 4% from last month and 1% from last year. However, the median leased price remained relatively stable.

Median closed prices. Denver metro area. October 2023. RE/Colorado — Image Source: RE/Colorado October 2023 Market Watch Report

Closing Statistics and Market Trends

The number of listings that closed in October was 12% lower than in October 2022. There was also a 6% drop compared to last month, marking the second consecutive month of decline. The median closed price of a Denver Metro area home stood at $580,000, up 2% from last year but showing a slight decrease of 1% from September to October.

Final Thoughts for Buyers and Sellers

For potential buyers and sellers in Denver, these statistics highlight a market in flux. Buyers may find more options and less competition, especially in the luxury segment. For sellers, especially those in high-end neighborhoods, pricing and marketing strategies must be finely tuned to the current market realities.

As your local real estate expert, I'm here to guide you through these complex market conditions, whether you're looking to upgrade your home or step into the luxury market. Let's navigate this journey together, leveraging deep market insights and tailored strategies to meet your unique real estate goals.

For personalized advice and the latest market insights for your neighborhood. Contact me at jeff@ironworksrealty.com.

Jeff Piquette

Jeff is the real estate expert behind Iron Works Realty. As an agent, he works with custom home builders to sell new builds, advises asset managers at US Bank to sell client properties, and works with residents throughout metro Denver to achieve their real estate goals. As a licensed contractor, he has built, renovated, and managed properties for more than 20 years. Today, he is building a family home in Cherry Hills and has a deep understanding of the surrounding neighborhoods and community.