Denver is known as one of Colorado’s most vibrant, eclectic, and amenity-laden cities. With its location at the doorstep of the Rockies and the American West, Denver is an attractive place to visit, vacation, and live in.
The area's natural beauty is renowned, offering abundant ways for residents to experience nature in its urban landscape, from parks to reservoirs. The city is home to a thriving economy with many industries setting roots here.
Since the impact of COVID-19, Denver’s real estate market has been focused on stability and growth, attracting homebuyers and investors. If you want to plunge into Denver’s housing market this year, you’ll want to know what to expect. From housing inventory and pricing to market dynamics, population analytics, and cost of living, this blog will give you an in-depth look into the Denver real estate market in 2023.
Denver housing forecast for 2023
2022 ended with a 35.19% decrease in inventory from November to December. However, there are still opportunities for motivated buyers and sellers. In 2023, Denver is seeing higher home prices and a slower sales pace because of a lack of inventory, but the rental market remains strong. However, expert predictions say that 2023 will pose a challenge to both buyers and sellers as the economy continues to recover.
Mortgage rates are expected to remain a persistent concern, but experts believe these rates will drop to around 5% from the January rate of 6.4%. Many real estate specialists believe that a substantial drop in mortgage rates (around 4%) will increase Denver’s home values.
However, there are a plethora of intricacies involved in the real estate market, and seeking guidance from qualified professionals is highly recommended. Elise LoSasso, a prominent Denver realtor ranked among the top 1% in her field, possesses extensive knowledge of the area and can help you traverse the market with confidence.
Home values decreasing
Before the pandemic, the surge in home values in Denver had reached such heights that it posed affordability challenges to those who earned around the median salary. Now, post-pandemic, buyers have leveraged the lack of inventory to their benefit. The longer a house is on the market, the more the price can be negotiated.
While the Denver housing market cannot quite be classified as a buyers’ market, it is expected to balance out into 2024. This balancing trend offers opportunities for both buyers and sellers.
Rising interest rates
Currently, the interest rate for a 30-year fixed mortgage in Colorado stands at 7.15%, and 6.53% for a 15-year fixed mortgage. In comparison, the national averages for these loans are 7.07% and 6.57%, respectively. Inflation is still running high, and the Federal Reserve will not be lowering interest rates anytime soon.
Positive net population migration
Renowned for its exceptional quality of life, Denver strikes a balance between urban allure and natural beauty. Nestled against the Rocky Mountains, the city offers an array of outdoor activities and scenic landscapes. The city’s vibrant arts, music, and sports scene adds extra excitement to Denver’s dynamic fabric.
Because of this, Denver experienced an 18% population increase from 2010 to 2019, but the rate has since decreased. Many have cited an increased cost of living in Denver and rising rent prices as the culminating factors behind the city’s negative population growth.
Denver real estate market: should you invest?
In addition, investing in rental properties with solid cash flow prospects can be a prudent choice, considering rising rental prices and the limited availability of houses for sale. Despite the current market slump, Denver properties hold long-term investment potential due to the city’s exceptional quality of life, strong economy, and its status as a highly sought-after place to live.
Investing with Ellie Losasso
Her profound knowledge of Denver sets her apart from the competition. She specializes in Greenwood Village, Centennial, and surrounding areas. If you seek a personalized real estate experience tailored to your needs, contact Elise LoSasso today. Whether you’re buying or selling, she’d be more than happy to help you.