May 2023 Market Updates: Why Now Is a Good Time to Sell Your Headache Property
"Worth buying real estate in 2023?" Preston Newberry, Jenny Bayless, Chris Lopez, Steve Medina, Newt Wyler
Knowing When to Sell and When to Buy | May 2023 Real Estate Market Updates
How is the real estate market along the Front Range shaping up for the summer? We’ve got the stats, trends, and updates for May 2023 and our roundtable of experts is here to break it all down for you. From discounted new builds in Northern Colorado to cash flowing buy and hold properties in Pueblo, we’re covering all of the strategies working right now.

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!
  1. Listen to the podcast “#453: 2023 Market Updates: Why Now Is a Good Time to Sell Your Headache Property” 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.

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.

Table Showing Denver Data for May 2023 Year to Date
Graph Showing Denver Active Listings for May 2023
Graph showing Denver New Listings May 2023
Graph showing Residential Median and Average Close Price for the Denver Market in May 2023
Graph Showing Denver Residential Active and Closed Listings for May 2023
Graph Showing Denver Average Days in the MLS for May 2023
Graph showing Average Days on the Market for Colorado Springs in May 2023
Graph Showing Residential Home Sales for Colorado Springs in May 2023
Graph showing Homes for Sale for Colorado Springs in May 2023
Graph Showing for Colorado Springs in May 2023
Graph Showing Prices for Colorado Springs in May 2023
Graph Showing Sales Year to Date for Colorado Springs in May 2023
Graph Showing Under Contract for Colorado Springs in May 2023
Table showing Listing Summary for Colorado Springs in May 2023
Graph of May 2023 Investor Purchases for Northern Colorado
Bar Graph of Annual Investor Purchases in Northern Colorado
Chart showing the current interest rates decrease buying power compared to a future of lower rates
Table explaining purchasing power

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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.
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