The spring selling season is here, and we’re back with your March 2023 market updates for the Front Range: Pueblo, Colorado Springs, Denver, and northern Colorado.  The markets in Colorado Springs and Denver are heating up, with prices rising month over month, though we’re still a long way from a balanced market.  Northern Colorado, our most geographically diverse market, is seeing increased sales everywhere, though prices are down a bit in Longmont and Greeley.  Overall, we’re excited about where things are going, and think next month’s stats will show increased activity, despite a somewhat slow start to the year. 

Three Learning Options!

1. Listen to the podcast “#445: March 2023 Market Updates: Where Are We Seeing the Best Deals for Investors?” Denver Real Estate Investing Podcast
   
2. Watch the YouTube video.
   
3. Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.
   

In This Episode We Covered

• We’re seeing more buyer interest in every market, and we looked at some great deals in Pueblo, Parker, and Thornton.
  
• Rental activity is picking up everywhere, which allows landlords to push rents. 
  
• One listener suggested we use the Case Schiller Index.  That’s a great question that leads to another one—what other metrics do you think we should use to evaluate the market? Let us know!
  

Denver Market Stats and Observations for March 2023
Active Listings

• Up 103% from last year
  
  • Homes +94%
    
  • Condos +127%
    
  
  
• Total active = 4,500
  
  • Historically, we average 13,600 listings now.
    
  • While inventories are up, it’s still a tight market.
    
  • March ’21 (remember how tight that was?) was the record low with 1,900 listings.
    
  • Normally, we’d expect March to have 7-10% more listings than February.  This year, the listings grew 20%.  Nice to see some more sellers coming to market!
    
  
  
• In our last “normal” market pre-COVID, in Mar ’19 we had 6,300 active listings.
  

New Listings

• 4,500 in Mar ’23 vs 2,200 in March ’22 (+105%)
  
  • The mortgage rates and the bad economic news started in March ’22.
    
  • Sellers are getting used to this new environment and are more comfortable.
    
  
  
• We’ve had 11,400 new listings YTD.
  
  • In our last “normal” market pre-COVID, in Mar ’19 we had 16,100 new listings YTD.
    
  • I’m encouraged by the strong growth in new listings in March, but we’re still behind pace.
    
  • Lower interest rates – perhaps a year away when we’re past the recession – will likely encourage more sellers to come to market.
    
  
  

Pending

• 4,300 in March ’23 vs 4,900 in March ’22 (-12%)
  
  • Recall in 4Q22 our pending counts (when mortgage rates were at/near 7%) were off 30-40% from prior year.
    
  • While rates have improved somewhat, it seems buyers and sellers are acclimatizing to the new rate environment after a year. 
    
  • It’s not “business as usual” like pre-COVID 2019, but it’s closer.
    
  
  
• Hopefully, the strong inventory increase in March will result in a good bump in pending deals by end of April.
  

Closed Unit Count

• Down -21% from last year
  
  • Homes -19%
    
  • Condos -25%
    
  
  
• Overall, 3,800 sales closed.
  

Average Price

• Down -5% from last year
  
  • Homes -6%
    
  • Condos -4%
    
  
  
• The overall average price was $665,000.
  

Average Days on Market

• Up 208% from last year (now 37 days vs 12)
  
  • Homes: 39 days (+255%)
    
  • Condos: 33 days (+175%)
    
  
  
• 37% of homes required at least one price reduction to sell.
  
  • In November (likely the bottom of this market cycle), 58% of homes required a price cut.
    
  
  

Colorado Springs Market Stats and Observations for March 2023
New Listings

• Homes
  
  • Up 45% from last month
    
  • Down 23% from last year
    
  
  
• Condos
  
  • Up 26% from last month
    
  • Down 13% from last year
    
  
  

Sales Count

• Homes
  
  • Up 38% from last month
    
  • Down 21% from last year
    
  
  
• Condos
  
  • Up 56% from last month
    
  • Down 35% from last year
    
  
  

Sales Price

• Homes
  
  • Up 5% from last month
    
  • Down 3% from last year
    
  
  
• Condos
  
  • Down 1% from last month
    
  • Down 7% from last year
    
  
  

Inventory

• Homes
  
  • Up 3% from last month
    
  • Up 110% from last year
    
  
  
• Condos
  
  • Up 5% from last month
    
  • Up 219% from last year
    
  
  

Note: The above Executive Summary is from Lon Welsh of Your Castle Real Estate.

Denver Housing Trends for March 2023



Colorado Springs Housing Trends for March 2023



Northern Colorado Housing Trends for Q1 2023



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