The Denver Real Estate Market in January 2023
Buyers and sellers are coming back into the market after the holidays. Total new listings increased by 65.2% month-over-month, and active listings still available at the end of the month decreased by 13.4% compared to December. While year-over-year numbers paint a less favorable picture, higher mortgage rates in 2023 make it more of an apples-to-oranges comparison.
Speaking of higher rates, prices continue to trend down although PorchLight agents experienced several bidding wars during the month, likely in the most prime neighborhoods and for listings in that sweet spot of the $500,000-$749,000 range.
In January, the median price for detached, single-family homes dropped slightly to $595,000 down from $600,000 the month prior. Prices were also down less than one percentage point compared to the same month last year and sellers received 98.2% of their asking price.
Detached homes are taking longer to sell as well, with median days on market up to 36 now. That's a 620% increase year-over-year. Again, take away today's higher rates and things would likely be moving a lot faster.
As for condos and townhomes, the median price in the attached market decreased to $397,000, down from $409,000 in December. A year ago, the median price was $400,000 which is another less than 1% decrease. Days on the market also increased by two over the prior month.
So, what does this mean if you're thinking about buying or selling in the coming months? Here's one take:
“Buyers are actively looking and the majority of the market still favors sellers. Homes may not sell in the first weekend or even the first 30 days, but they are selling and prices are staying strong. I don't think we will be breaking huge records as we have over the last three years, but our market will stay resilient.” —Libby Levinson-Katz, Chair of the DMAR Market Trends Committee and Denver Realtor®
Final thought. Across both segments, detached and attached, closed listings were down 29.2% month-over-month to 2,041 homes, but pending sales increased significantly by 50.6% (or 3,339 homes) indicating that homes went under contract as the market picked up later in the month.
With just 2,858 new listings coming on the market last month, 5,380 properties going under contract or closing helped bring down the end-of-month active listings number as well. January ended with 13.4% fewer homes still on the market compared to what was a pretty slow December.
If this continues, it's possible that we're in for a busy spring within a more normalized market.
Getting Your Home Ready for Marketing Photos
If you plan on selling this year, PorchLight's comprehensive services include taking professional-quality photos for you. Great photos maximize the number of potential buyers who will want to see your home, and most importantly, make an offer on it.
Preparing your home so that our photographers can capture it in its best light can give you an even greater advantage.
Start by decluttering. Removing extra stuff like mail, phone charger cords, toys and knickknacks, will keep eyes focused on the charm of your home and make every space look bigger. You'll also want to depersonalize so that buyers can imagine moving in and making the home their own. This requires packing up family photos, taste-specific art or decor, as well as personal care products.
Below is an easy checklist you can use to make sure all your bases are covered.
- Turn on every light and open up the curtains or blinds.
- Remove small rugs and runners that hide your floors.
- Turn off all ceiling fans, TVs and computer screens.
- Clear the counters of excess and non-decorative items.
- Make sure there are no dishes in the sink or drainer.
- Remove photos, magnets and artwork from the fridge.
- Remove soaps, toothbrushes, medication, razors, etc.
- Fold and neatly hang up fresh, clean guest towels.
- Always check that the toilet seat and lid are closed.
- Put hoses, garbage cans, bikes, tools and toys away.
- Keep your lawn lush and landscape in good shape.
- Remove vehicles in the driveway and close the garage.
- Keep pets offsite or out of the way for the photoshoot.
- Make sure there’s absolutely no pet waste in the yard.
- Remove beds, crates, cat trees, food bowls, toys, etc.
- Make beds, fluff pillows and straighten throw blankets.
- Put all shoes, jackets and strollers neatly in a closet.
- Add a vase filled with flowers or a bowl of fresh fruit.