The central Denver real estate market has seen fluctuations but generally remains on an upward trend. The median price peaked at $900,000 in February, dipping to $875,000 in June and July, and has since recovered to $900,000.
The supply and demand ratio indicates that while 2023 was not as frenzied as the pandemic years, it’s still very much in line with the pre-pandemic, moderate growth years. This suggests a more stable market with continued demand and limited inventory, which could lead to moderate appreciation, as we saw in 2018 and 2019.
With strong demand and buyers eager to enter the market, there’s a sustained interest in purchasing homes despite the higher cost of borrowing. Anticipation of the Federal Reserve potentially reducing interest rates might accelerate appreciation by making borrowing more affordable and stimulating more home purchases.
The most significant difference between today’s and pre-pandemic markets is the decrease in total sales volume. Thirty percent fewer homes sold in 2023 compared to 2018 and 2019. Other than sales volume, not much has changed for buyers or sellers.