How did the spring selling season shape up? Our roundtable of experts is back to discuss all the market updates, stats, and trends in the May 2023. Envision Advisors agents Jenny Bayless, Preston Newberry, Newt Wyler, and Your Castle agent Steve Medina joined me to talk about what’s happening along the Front Range, from Pueblo to Northern Colorado.
Three Learning Options!
- Listen to the podcast “#453: 2023 Market Updates: Why Now Is a Good Time to Sell Your Headache Property” Denver Real Estate Investing Podcast
- Watch the YouTube video.
- Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.
In This Episode We Covered:
- The abundance of new builds in Northern Colorado are giving investors an opportunity to buy brand new homes at discounted rates, sometimes as much as $70K off.
- Denver’s prices are mostly flat as the average days on the market increases, though well-priced properties are moving quickly.
- The strategies working best in Colorado Springs are leveraged multifamily properties with sizable down payments, room by room rentals, and house hacking.
- Pueblo still offers strong returns on long term rentals for investors following a buy and hold strategy.
- 60% of sellers had to offer some sort of concession–a great opportunity for buyers to buy down their interest rate.
- Investors who can afford to buy a property now will likely be able to refinance into a lower rate in the future.
- Why now is a good time to review your portfolio and think about selling if you have a property that’s giving you headaches.
Denver Market Stats and Observations for May 2023
Price
- -2% from May ‘22
- So many sellers are entranced with their 3% mortgage that few want to bring their listings to market.
- We have limited supply and limited demand, so the prices are steady. I could imagine this balance continuing for most of the rest of the year.
Number of Sales
- -29% from May ‘22
- The debt ceiling discussions in Washington contributed to mortgage rates going up in recent weeks. That’s slowing down buyers.
- New mortgage applications is firmly at 10 year lows.
Days on Market
- +144% from May ’22 (from 9 days to 22 days)
Active Listings
- +43% from May ‘22
- 5,225 active listings currently vs. historically May has 14,900.
New Listings
- -24% from May ‘22
Under Contract
- Off 23% from May ‘22
Average Discount
- 0.5% typical premium in May ’23 vs 5.3% premium in May ‘22
Other Notes
- 60% of sellers had to offer a concession to get their deal done. I’d imagine rate buydowns are a large part of that.
Colorado Springs Market Stats and Observations for May 2023
New Listings
- Homes
- Up 6% from last month
- Down 28% from last year
- Condos
- Up 16% from last month
- Down 4% from last year
Sales Count
- Homes
- Up 14% from last month
- Down 26% from last year
- Condos
- Up 33% from last month
- Down 11% from last year
Sales Price
- Homes
- Up 1% from last month
- Down 3% from last year
- Condos
- Down 1% from last month
- Down 2% from last year
Inventory
- Homes
- Up 10% from last month
- Up 28% from last year
- Condos
- Up 10% from last month
- Up 133% from last year
Note: The above Executive Summary is from Lon Welsh of Your Castle Real Estate.
Denver Housing Trends for May 2023
Colorado Springs Housing Trends for May 2023
Northern Colorado Housing Trends for May 2023
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