Despite high interest rates and a cooler market, housing prices in Colorado are back to near historic highs.
The median price of a single-family home in the state peaked in April 2022 at $600,000 before dropping steadily in the fall. The median price hit a low of $520,000 in January, a 13% decline, according to the Colorado Association of Realtors. But in February, prices started rising again. In May, the median single family home price in the state was $575,000, down just 4% from last year’s peak. In Denver, the median single family home price was $632,000.
Even as prices rise, however, sales are down. In the first five months of this year, 23% fewer homes sold compared to 2022. Listings are also spending nearly twice as long on the market—averaging 52 days to sell this year compared to 27 days last year. In May 2023, about a third fewer homes sold compared to May 2022. Denver saw a 19% drop in number of homes sold, from 767 homes in May 2022 to 542 homes this May.
High prices are likely the result of limited inventory. In May 2023, there were 22.5% fewer homes on the market—8,678 single family homes—compared to May 2022, when there were 11,198 single family home listings. Homeowners may be less willing to sell their current homes because they would have to finance a new one at a higher interest rate.