Denver Market Insights: August 2023
Are you considering buying or selling a home in the vibrant city of Denver? Whether you're looking to upgrade your current residence or make a move to a luxury neighborhood, it's essential to stay informed about the latest trends in the Denver real estate market. In August 2023, the market continued to evolve, with several key indicators reflecting the ongoing changes.
Image Source: REColorado
Median Closed Price
The median closed price of a home in the Denver Metro area experienced a noteworthy shift in August. After reaching its peak in June, it has gradually leveled off. In August, the median closed price dipped for the second consecutive month. However, it's essential to note that due to robust demand, there is limited room for negotiation on price. Homes closed at an impressive 98% of their asking price during this period.
Home Closings
While there was a seasonal uptick in the number of home closings from July to August, it's important to highlight that there were 12% fewer closings compared to the same period last year. The combination of resilient home prices and high-interest rates has deterred some buyers from entering the market. However, there was a notable exception in the luxury real estate market, where homes priced at $2 million or more saw a remarkable 31% increase in closings year over year.
Inventory Levels
Despite a slight increase in the number of new listings from the previous month, overall inventory levels across the Denver Metro area remain low. Inventory is down by 7% compared to last year at this time. Homeowners appear hesitant to part ways with their low mortgage rates in exchange for a new property. The $500,000 to $600,000 price range had the most fresh listings.
Rental Market
August saw a surge in properties leased using REcolorado MLS, with a 17% increase compared to the same month last year. Over half of these listings were single-family homes. Consequently, the price per square foot and price per bedroom experienced a slight decline year over year, while the median leased price saw a 5% increase.
In conclusion, the Denver real estate market in August 2023 is characterized by a leveling off of median closed prices, a dip in home closings compared to last year, low inventory levels, and a thriving luxury market. For buyers, this means that competition remains fierce, and negotiating power may be limited. Sellers can still benefit from strong demand, especially in the luxury segment.
If you're considering buying or selling a home in Denver, it's crucial to work with an experienced real estate agent who can navigate the nuances of the current market. Whether you're looking for your dream home in a luxury neighborhood or seeking to upgrade your current property, Iron Works Realty is here to help you make informed decisions in this dynamic real estate landscape. Contact me today to discuss your Denver real estate goals and explore the best options tailored to your needs.
