January 2023 Market Updates: Why Savvy Investors Are Buying Now
Why Savvy Investors Are Buying Now
The January 2023 market stats are out, and our roundtable is back to discuss what they mean and how Denver and Colorado Springs are trending. Inventory- is it up or down from last January? Are prices likely to increase or decrease? We’ll talk about the benefits of buying now, as well as details on our latest cash flowing deals. Don’t miss out on the great opportunities in the market right now!

Check out the podcast or YouTube video to hear the full conversation with Envision Advisors agents Jenny Bayless, Preston Newberry, and Jeff White. We talked about stats, creative deals we’re seeing, and and our predictions for the future.

Three Learning Options!
  1. Listen to the podcast “#436: January 2023 Market Updates: Why Savvy Investors are Buying Now” Denver Real Estate Investing Podcast
  2. Watch the YouTube video.
  3. Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.

Denver Market Stats and Observations for January 2023

Inventory

  • Up 250% from Jan ‘22
    • Great gains in homes and condos
  • Down 34% from Dec ’22, which is more than the typical historical pattern.
  • Average listings for January from 1985-2022:  12,400
    • Record low in Jan 22:  1,185
    • Current:  4,120
  • Historical view – just before COVID
    • 4,900 in Jan ‘20
    • 5,900 in Jan ‘19
    • So our current inventory is  LOT better than the desperate situation we were in in ’21 and early 22, but we’re still not at pre-COVID levels.  IT’d be great to have more would-be sellers, sitting on the fence, bring their listings to market!

Closed Units

  • Down 34% from Jan ‘22
    • Not as grim as the 40%++ declines that we saw in the past few months
    • Similar results for homes and condos
  • Overall, fewer US citizen (owners and renters) moved in ’22 (work from home might be a partial driver).
  • Stories exist of an uptick in bidding wars from desirable homes that are priced well.  But not nearly as common as fall ’20 and all of ’21.

Price

  • Average Up 3% from Jan ‘22
    • Homes up 2% and condos essentially flat (odd mix issue at work here)
  • Median down -1% from Jan ‘22

DOM Days on Market

  • Up 130% from Jan ‘22
    • Similar increase in marketing time for homes and condos
  • 34 days is still historically a fast DOM.

Under Contract

  • Up 51% from Dec ’22 
  • Only down 8% from Jan ‘22
  • This is very exciting to see that we are likely past the bottom.

Discounts

-1.9% in Jan ’23 vs. a 2.3% premium in Jan ‘22

Colorado Springs Market Stats and Observations for January 2023

Inventory

  • Up 250% from Jan ‘22
    • Great gains in homes and condos
  • Down 34% from Dec ’22, which is more than the typical historical pattern.
  • Average listings for January from 1985-2022:  12,400
    • Record low in Jan 22:  1,185
    • Current:  4,120
  • Historical view – just before COVID
    • 4,900 in Jan ‘20
    • 5,900 in Jan ‘19
    • So our current inventory is  LOT better than the desperate situation we were in in ’21 and early 22, but we’re still not at pre-COVID levels.  IT’d be great to have more would-be sellers, sitting on the fence, bring their listings to market!

Closed Units

  • Down 34% from Jan ‘22
    • Not as grim as the 40%++ declines that we saw in the past few months
    • Similar results for homes and condos
  • Overall, fewer US citizen (owners and renters) moved in ’22 (work from home might be a partial driver).
  • Stories exist of an uptick in bidding wars from desirable homes that are priced well.  But not nearly as common as fall ’20 and all of ’21.

Price

  • Average Up 3% from Jan ‘22
    • Homes up 2% and condos essentially flat (odd mix issue at work here)
  • Median down -1% from Jan ‘22

DOM Days on Market

  • Up 130% from Jan ‘22
    • Similar increase in marketing time for homes and condos
  • 34 days is still historically a fast DOM.

Under Contract

  • Up 51% from Dec ’22 
  • Only down 8% from Jan ‘22
  • This is very exciting to see that we are likely past the bottom.

Discounts

  • -1.9% in Jan ’23 vs. a 2.3% premium in Jan ‘22

Note: The above Executive Summary is from Lon Welsh of Your Castle Real Estate.

Get Started Building Your Own Rental Property Portfolio

If you’re interested in buying an investment property and want to know what’s on the market now, sign up for our weekly deals list email.

Analyze Before You Buy
Start Evaluating Properties Today with Our Free Toolkit
In a rapidly changing market, having the tools you need to help you analyze the data is critical. Know what the numbers will look like ahead of time so you don't buy a bad deal. Our toolkit is designed to help you thoroughly analyze any kind of deal so you can invest with confidence.
Start analyzing your Colorado investment properties today
Rental Property Spreadsheet • House Hacking Spreadsheet BRRRR Calculator Spreadsheet • Fix and Flip Deal Analyzer Investing Maps • Rehab Pricing Estimator
Start analyzing your Colorado investment properties today
Rental Property Spreadsheet • House Hacking Spreadsheet BRRRR Calculator Spreadsheet • Fix and Flip Deal Analyzer Investing Maps • Rehab Pricing Estimator
Authors
Chris Lopez
Chris Lopez is a Denver area real estate entrepreneur and investor, as well as the host of Bigger Pockets’ House Hackerz and the Denver Real Estate Investing Podcast.
Similar Post You Might Also Like
Podcasts - Denver
How to Cash Flow through House Hacking in 2024
Discover the top cash flowing strategies for house hackers in Denver with our 2024 Guide to House Hacking!
Denver
Real Estate Development from Concept to Reality | Deal Analysis
Real estate developer, Adam Fenton, joins us for an in-depth deal analysis of Narrate’s current development project, covering key aspects
Sign Up For Our Newsletter
What do you want to learn today?

All registrants get the recording sent to them automatically.