December 2022 Denver Porch Report

Warmest holiday wishes. I hope youre having a festive time with your friends and family. As we get ready for a joyful new year, please feel free to reach out if I can help with anything home or real estate related. Im always available for my friends. Cheers and all the best!

Moving deeper into the winter and holiday season led to home prices and the volume of sales decreasing while the number of days listings spent on the market increased.

The median price for detached, single-family homes came in at $615,000 in November. That's less than 1% below the October median price of $622,490. So, why arent we seeing major price drops despite higher mortgage rates? Inventory.

In fact, just 1,862 detached homes came on the Denver real estate market in November, down around 30% compared to both the prior month and year.

After two years of unprecedented, low interest and mortgage rates, the Fed introduced higher rates in 2022 to curb inflation and slow housing price appreciation. And our market shifted.

Looking at 2023, the consensus is that the market will remain the same then begin to improve. Some experts predict that home prices will increase slightly while others forecast a flat market or further price decreases. There is agreement, however, that rates will fall but not by much.

Taking this all into consideration, the 2023 market will likely be a time for buyers to reconcile their budgets and wish lists while enjoying more time to shop and less competition.