April 2023 Market Update

Being a leading real estate team in Colorado, we take great pride in being ahead of the curve with the latest industry trends and developments. Our commitment to providing top-notch services to our clients is reflected in our monthly updates, where we analyze the previous month's market data and offer our expert insights on the current state of the luxury real estate market. Our reports cover emerging trends and the key factors that influence the market, ensuring our clients are well-informed when making important decisions.

Whether you're a buyer, seller, investor, or simply interested in staying informed about Front Range real estate, we're here to provide you with the latest and most accurate information. Let’s analyze the data from April.

Sales Price Comparison – April 2022 vs. April 2023

When it comes to condo/townhome appreciation, Berthoud and Boulder are leading the pack with 18.95% and 18.72% respectively, virtually unchanged from last month.

As with single-family homes, Loveland, Windsor, and Fort Collins offer the greatest affordability and lowest average condo/townhome sales price of our Front Range markets.

Single-family average appreciation remains strong in most markets, with Estes Park taking a slight decrease of -2.87% and Longmont at 0.14% when we look at the rolling twelve months from April 2021 – April 2022 versus April 2022 – April 2023. 

Note, this average can be impacted by the types of homes being listed and sold. For instance, the prior rolling twelve months could have had more high-end homes listed vs. the current rolling 12 months. For example, Estes Park had 16 more high-end homes sold from April 2021 – April 2022 as compared to April 2022 – April 2023.

Additionally, in 2021-2022, Estes Park had a home sell for $12 million, while the highest-priced sale in 2022-2023 was only $3 million. Likewise, in Longmont there was a 200% increase in home sales at the entry-level price range below $500,000 from April 2021 – April 2022 to April 2022 – April 2023 and a 26% decrease in home sales over $1 million. In other words, seeing a decrease in average sales price does not necessarily equate to homes actually decreasing in value.  

Some outliers for appreciation continue to be Berthoud and Timanth single-family homes, where appreciation rates are above 18%, a 3% gain from last month. Both of these markets are growing the most due to a greater number of new construction homes being offered for sale.

What this means: Appreciation remains strong

Average sales price in every market we cover, with the exception of single-family homes in Estes Park, is up versus this time last year, so appreciation remains strong. 

When we look at the two factors we track (12-month rolling appreciation and level of current inventory [below]), most markets MCM Collective covers remain strong for home owners and sellers. 

April 2023 Regional Statistics: Colorado Front Range

What this means: Inventory is increasing, but still low

Inventory is increasing in every market (which is a welcome sign for weary buyers, who will now see more options available). That said, sales are picking up in every market, so inventory remains slim. A balanced market has 6 months of inventory. A balanced market has enough supply for buyers to select what they like, and sellers to still be able to negotiate terms that are favorable.

All markets we cover have considerably lower inventory than would be expected for a balanced market, with most markets hovering around 2 months of supply. Timnath and Berthoud are the outliers with just under 3 months of supply, which is still far below a balanced market. And, in reality, the 3 months of supply that both Timnath and Berthoud are showing is skewed because many of the listed homes are currently under construction and not yet truly available. 

What we’re seeing: A complex and contradictory market

The current market is very complex, which makes it even more important to work with experienced and market-savvy Realtors. Due to increased mortgage interest rates, buyers have less liquidity to make improvements to homes they are purchasing, and they are much pickier about what they are buying. 

With low inventory and pickier buyers, homes that are priced right and in good condition are still receiving multiple offers. Homes that are overpriced, in poor condition or in a poor location are taking much longer to sell and often are having to reduce their price to get under contract. These dynamics explain how we are in a seemingly contradictory market that is seeing both multiple offers over asking price, and longer average days on market with price reductions.

Summary

Now is still a great time to sell. If you have been on the fence about selling your home to find a home that works better for you, downsize, find your dream home, or move out of state, the market is on your side, as long as you price correctly and prepare your home properly. If you are interested in how we ensure proper pricing strategies and expertly prepare our listings to sell quickly, call us and we would be delighted to discuss our strategic selling process with you.

If you’re looking to buy, you have options. Many buyers are buying down their interest rate to afford their dream home while waiting for interest rates to drop. Many recent forecasts expect rates to drop below 6% by 2024. 

As experts in local markets all along Colorado’s central and northern Front Range, we are familiar with areas adjacent to high-priced markets like Boulder, Lafayette, and Timnath. Let us find your ideal home in a great location at the right price.

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