Welcome to the 2023 market! We’re expecting the Great Rebalancing Act of 2022 to keep zipping forward for the next few months (at least). Along the Front Range, December is our quietest activity month. Buyers and sellers were more focused on the holidays, taking time off, and considering their goals for 2023.
As seasonal as eggnog in December, our inventory experienced the end-of-year purge. Listings in the MLS (Multiple Listing Service) expired on December 31st. This, combined with the lack of new active homes, drives buyer demand at the beginning of the first quarter. Many of our Front Range communities remain a soft seller’s market.
But we bet you’re reading headlines that say otherwise, right? Some doom-and-gloom comparisons to the last few years. Please…do yourself a favor and skip those articles. As we’ve discussed, our markets are correcting, not imploding. So comparing 2023 to the pandemic-frenzied markets will not give you an accurate snapshot. Looking back to the end of 2019, our major areas are pretty close to the same amount of inventory:
December 2019 vs 2022 End-of-Month Listings
Boulder County 2019: 151 homes 2022: 140 homes
Metro Denver 2019: 5,037 homes 2022: 4,757 homes
What’s in store for 2023? Moderation and a more traditional real estate calendar. After all, people are still moving for the usual reasons: relocation, a new baby, or retirement. Not because they can get a new home with a 3% mortgage interest rate. Home appreciation will not be in the double-digits (as our markets adjust, home values may even flatten out over 2023). But my goodness – we sure enjoyed that increase in equity over the last three years, didn’t we?!? Interest rates will be volatile for a while (look for our update later this month). Still, the government is taking strides to make homeownership more affordable, and lenders are offering new products and solutions.
So if 2023 is going to be anything like 2013-2019, we can expect activity to start picking up after the Super Bowl and a “moderate” surge of listings around March…in less than eight weeks from now! So now is the time to start preparing.
Sellers, contact me to prepare your home for a successful sale. The sooner you and your agent meet to identify value-boosting repairs and set up contractors, your chances of meeting your goals and needs could increase substantially. The more enticing your property, the higher the offers and the greater your negotiation power.
Buyers, right now, homeowners who’ve listed their homes are serious about getting under contract. If your finances are in order, start your search now with so you can be the early bird. Even if you decide to wait until spring or when rates lower, your agent can help you strategize your must-haves and negotiations.
| Detached Single Family | Year to Year | ||
| Dec ’21 | Dec ’22 | % change | |
| Active Listings | 968 | 3,407 | 251.96% |
| New Listings | 1,780 | 1,182 | -33.60% |
| Pending | 2,088 | 1,640 | -21.46% |
| Closed | 3,356 | 1,920 | -42.79% |
| Closed Price Median | 599,970 | 600,000 | 0.01% |
| Closed Price Average | 707,417 | 707,997 | 0.08% |
| Days on Market | 19 | 45 | 136.84% |
| Months Supply of Inventory | 968.53 | 2.39 | -99.75% |
| Average Percent of Original List Price | 101.65% | 98.28% | -3.32% |
| Sales Volume | 2,374,090,962 | 1,359,354,128 | -42.74% |
| Month to Month | |||
| Nov ’22 | Dec ’22 | % change | |
| Active Listings | 4,572 | 3,407 | -25.48% |
| New Listings | 1,862 | 1,182 | -36.52% |
| Pending | 2,035 | 1,640 | -19.41% |
| Closed | 2,050 | 1,920 | -6.34% |
| Closed Price Median | 615,000 | 600,000 | -2.44% |
| Closed Price Average | 732,437 | 707,997 | -3.34% |
| Days on Market | 36 | 45 | 25.00% |
| Months Supply of Inventory | 3.13 | 2.39 | -23.64% |
| Average Percent of Original List Price | 98.11% | 98.28% | 0.17% |
| Sales Volume | 1,501,494,956 | 1,359,354,128 | -9.47% |
| Attached | Year to Year | ||
| Dec ’21 | Dec ’22 | % change | |
| Active Listings | 508 | 1,350 | 165.75% |
| New Listings | 882 | 553 | -37.30% |
| Pending | 1,053 | 685 | -34.95% |
| Closed | 1,427 | 800 | -43.94% |
| Closed Price Median | 383,000 | 405,000 | 5.74% |
| Closed Price Average | 440,972 | 469,505 | 6.47% |
| Days on Market | 17 | 38 | 123.53% |
| Months Supply of Inventory | 0.97 | 2.37% | -97.56% |
| Average Percent of Original List Price | 101.22% | 98.64% | -2.55% |
| Sales Volume | 629,266,864 | 375,604,063 | -40.31% |
| Month to Month | |||
| Nov ’22 | Nov ’22 | % change | |
| Active Listings | 1,681 | 1,350 | -19.69% |
| New Listings | 816 | 553 | -32.23% |
| Pending | 789 | 685 | -13.18% |
| Closed | 827 | 800 | -3.26% |
| Closed Price Median | 410,000 | 405,000 | -1.22% |
| Closed Price Average | 472,126 | 469,505 | -0.56% |
| Days on Market | 30 | 38 | 26.67% |
| Months Supply of Inventory | 3.01% | 2.37% | -21.26% |
| Average Percent of Original List Price | 98.87% | 98.64% | -0.23% |
| Sales Volume | 390,447,856 | 375,604,063 | -3.80% |
