Colorado's Housing Market Just Tipped Toward Buyers, But Not Everywhere the Same Way

If you've been waiting for a sign that the Colorado market is loosening up, the numbers from August finally give you one. But the story isn't the same in every zip code, and it changes a lot depending on whether you're buying in Denver proper or elsewhere in the surrounding areas or the mountains.

What changed

The Colorado Association of REALTORS' latest report shows statewide sales down 11.3% year over year, with the Denver metro seeing a steeper 14.3% drop. Homes are sitting longer too: the statewide median is now 65 days on market, up more than 8% from a year ago. Borrowing costs have climbed to their highest point in close to a year and a half, and that's the main thing slowing buyers down. (I'm not a lender, so for an exact rate quote, check with yours, they move daily) Prices haven't collapsed though. The statewide median is holding around $550,000.

What it means if you're buying

This is the most negotiating room buyers have had in a while. Nearly half of Denver metro closings in August included a price reduction, and most included some form of concession where the seller gives the buyer money at closing for things like rate buy-downs or closing costs. If you've been outbid on the last few houses you liked, this is a different market than the one you were shopping in six months ago.

What it means if you're selling

Realistic pricing matters. This is not the market where you can throw a price at the wall and hope it sticks. A home priced to what the market will actually bear today sells faster and for more than one that gets discounted twice after sitting. If you're planning to list this fall, talk to me before you pick a number.

A note on the mountain markets

If your search radius includes places like Summit, Eagle, or Grand County, the picture is different again. Eagle County's median price is up 18% year over year, and in Summit County nearly half of listings are now priced above $1 million. Higher-end and resort markets are behaving more independently of the rate story than the Denver metro is, which matters if you're weighing a primary home purchase against an investment property in the mountains. Some of this is an inventory story. Housing costs in many mountain towns have been on a steady rise due to a lack of available housing, let alone affordable housing.

None of this changes overnight, and it doesn't mean the same thing for every buyer or every neighborhood. If you want to talk through what it means for your specific situation, send me a message. I'll pull the numbers for your area.

Aaron Williams, Realtor® — milehimodern, Colorado. Consumers Property Resource Group is an educational resource owned and operated by Aaron Williams, a licensed real estate agent.