The Denver Real Estate Market in April 2023
With inventory remaining tight and buyers growing accustomed to today's higher mortgage rates, homes are getting snapped up nearly as fast as they're going on the market. Fortunately for buyers, gloves-off bidding wars aren't as frequent as they were in years past and prices grew more modestly month-over-month.
Let's get into it. The median price for detached, single-family homes in April came in at $640,000 compared to $620,000 the prior month. Year-over-year, that's a drop of 5.9% which is good news for buyers. However, that's still well above the 2021 median for April which was $582,000. So yes, it's still a good time to sell your home as you've built a big chunk of equity in just two years!
Sellers are also receiving 100% of their asking price, just about one percentage point higher than the previous month—yet lower than the 107% they were getting in 2022.
As for home inventory, there were 3,377 new listings that came on the Denver real estate market in April, a 5.2% decrease over March and 32.7% lower compared to April of 2022. On the flip side, 3,186 single-family homes went under contract last month and days on average days on the market dropped yet again to 30.
And if you look at median days on market, which finds the number smack dab in the middle and offsets the more extreme data points, homes typically spent 7 days on the market. While that's a big drop, DOM at this point in 2022 was just 4, so buyers still have some time to shop around if they aren't looking for turnkey in prime areas.
This pattern somewhat repeats when looking at the attached real estate market such as condos and townhomes. New listings came in at 1,381 properties and 1,303 listings went pending. Yet prices only increased by 0.7% month-over-month, coming in at $410,000. In April of 2022, the median price was $440K and in 2021 it was $375K. Talk about a rollercoaster!
So, how will the rest of spring shake out? If April's drop in new inventory persists, it's likely that buyers will see more competition and have less time to shop around, but prices may not skyrocket like they did in 2022. No matter what, make sure you have a knowledgeable and experienced expert by your side to be your advocate and help you achieve your real estate goals.
Understanding the Home Buying Process
Getting into the real estate market may seem like a lot to take on. It can be a lengthy process with important steps, key deadlines, big decisions to make, and if you’re not professionally represented, a lot of stress.
Before you even get started, it's a good idea to understand the basic phases that you'll experience when buying or selling. Here, we give you a brief overview of what to expect, as well as what a PorchLight agent can offer to give you an advantage during your transaction.
Start the Mortgage Process – Connect with a reputable lender and complete the process to be pre-approved. This is one step beyond being pre-qualified which only requires basic info about your income and expenses. The pre-approval process is more comprehensive, giving you a more accurate budget to use when house hunting.
Choose a Real Estate Agent – The right agent will guide you based on your criteria, budget and preferred location. At PorchLight, our agents know the local neighborhoods inside and out. They'll show you homes in your favorite areas, as well as some that offer a similar feel but with homes that might fit better within your budget.
Find Your Perfect Home – We use RealScout which pulls listings directly from the MLS every 30 minutes. You'll receive email or text notifications as soon as homes that meet your criteria and feature preferences (hardwood floors or a yard) become available. Then, browse listings and attend open houses or schedule showings.
Make an Offer – Work with your agent to prepare an offer. They’ll write, submit and negotiate on your behalf. Currently, the market is highly competitive due to low home inventory, so be sure to discuss smart strategies with your PorchLight agent who will help you gain the advantage and submit the strongest possible offer.
Come Under Contract – Once your offer is accepted, both sides of the deal will sign a contract, basically stating that you agree to all the terms that will go into purchasing the home. You'll provide your earnest money (sort of like a good-faith deposit), and the home will be held in escrow until closing.
Do Your Due Diligence – It's time to set up an inspection to ensure the home doesn't have any major issues, along with an appraisal of its value. You'll also want to choose home insurance, secure the title and handle other paperwork. Your agent can guide you through it, and even provide a checklist to keep you on track.
Close and Get the Keys – Once you’ve secured your home loan and are cleared to close, funds are transferred, paperwork is signed, and the keys are yours. Keep in mind that your lender may check your credit up until the day of closing. Leaving a job, making a major purchase, or otherwise disrupting your finances can still lead to a loan denial at the 11th hour.