The great state of Colorado is beloved by its nearly six million residents and the tens of millions who visit the state each year. It’s beautiful from corner to corner, hence why the Colorado housing market is always one to watch.
Whether you’re moving to Colorado, selling your Colorado home, or considering a business venture in the state, it’s valuable to first understand the Colorado real estate market. In the following blog, we’ll highlight some of the most useful data to paint a picture – whether you’re coming or going.
Is it a Good Time to Buy a House in Colorado?
For those currently seeking homes in Colorado, being a shrewd buyer will be more important than in most parts of the country because the state tends to hold its residents. Like many other areas, Colorado house prices have been rising, so buyers should gather as much intel as possible about the homes and areas they’re considering.
The supply is lower than most other appealing destinations, and long-time residents tend to be savvy and move quickly when they decide to relocate within the state.
But once you find a suitable location, buying a home will be much the same as most other states. If you’re new to the process, you can follow our home-buying checklist to learn how to prepare and use a mortgage calculator, among other tools, to calculate a reasonable budget before moving to Colorado.
A Rundown of Colorado Real Estate Market Trends in 2024
While thick with wilderness and majestic mountains, Colorado is also home to modern cities, communities, and businesses. In addition to contesting other hotbed states for a place US’s cannabis industry epicenter in recent years, it boasts other positive economic traits that contribute to these trends in the Colorado housing market:
- Colorado was below the national unemployment rate of 3.7% in October 2023 at 3.3%, following along with other states that have recovered since major spikes during the Covid-19 pandemic.
- The real GDP growth rate for the 3rd quarter of 2023 was 5.8%, putting it in 10th place among the other 49 states.
- Agriculture, forestry, fishing, and hunting growth during this period in Colorado was a staggering 124%—not only is the state known for its pretty landscapes, but it also monetizes them.
The economic conditions in the state and the rest of the country have further impacted the Colorado housing market. Some of the most valuable facts about the current conditions in the state are as follows.
- New listings are seemingly surging. Compared to January and year-over-year (YoY), new listings are up 18% and 26% for single-family homes and townhomes/condos, respectively. With that said, inventory is quite low, so the Colorado real estate market is just barely able to meet the demands of home buyers.
- Closings climb for residential properties. Single-family home closings are up 34% month-over-month and 5.7% YoY. Townhome and condo closings are up 38% month-over-month and 7% YoY. Because of demand, new houses emerging on the market tend to sell with ease.
- Pending sales increase. Pending and under-contract single-family homes are up 10% from January and 5% YoY. Townhome and condo pending sales are up 13% from January, but flat compared to February 2023. The trend in pending sales in the Colorado housing market further indicates that buyer demand overshadows supply and that homebuyers are mostly comfortable with home prices.
- Inventory remains tight. Despite an increase in new listings, overall inventory remains low, keeping the Colorado real estate market competitive for buyers. It’s a great time to sell, but buyers should be prepared to bid against others for attractive homes, especially if they wait until later in the year.
- The average house price in Colorado is slowly leveling off. The statewide median sales price sits at $558,900, reflecting a 4% increase from last year. In Denver, the median home price through March 2024 is $629,900, up from $635,000 in 2023, making it slightly more expensive than the rest of the state.
While interest rates are a factor as with everywhere else in the US, demand for housing remains strong. This Colorado real estate market trend suggests continued price increases, faster sales, and overall market activity in the coming months.
Projections for the Colorado Real Estate Market Through 2024
If you’re planning on moving to Colorado from out of state, you’ll want to make sure you’re familiar with not only the immediate area but also the conditions of the city or county in which you’ll be living. Parts of Colorado are driven by both outdoor recreation and ag-related businesses, while others are supported by retail, hospitality, and technology. It’s important to know about upcoming changes that sometimes cause Colorado residents to shuffle around the state.
Because of current and historical trends, these same conditions are likely to persist throughout the year. Expect homes in the Colorado housing market to become harder to find near the end of the year as people tend to buckle down, which will further impact inventory (though this is favorable for those considering selling their homes).
As such, the two main takeaways about the Colorado real estate market for buyers and sellers are as follows:
- For those considering buying a home in Colorado, there’s no time like the present. The median Colorado housing price is steadily rising – a trend that will likely continue because of supply issues. Buying now, despite the high interest rates, should minimize the risk of bidding wars, which should increase slightly over the year. Keep in mind that no matter where you ultimately move in Colorado, you can refinance once rates drop, provided you have adequate equity.
- Most home sellers are in an ideal place, a trend that will sustain so long as the housing scarcity remains. Average house prices in Colorado have already surged significantly over the last few years, meaning most homeowners considering selling their house should stand to profit. If you sell now, you should sell quickly. But waiting until later in the year could result in a slightly higher sale – possibly much higher if scarcity were to increase further.
Final Thoughts on the Colorado Housing Market
If you’re planning on moving to Colorado, it would be smart to start the process as soon as possible to get the best deal possible. Sellers who are keen to relocate can take advantage of current conditions to lock in current Colorado housing prices and sell quickly.
