Denver First-Time Home Buyers Face a Competitive Market in 2023 & 2024

Published:
May 16, 2017
Last updated:
October 9, 2023
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Are you a first-time homebuyer looking to make a purchase in Denver in 2023 or 2024? The market right now is a competitive one in the city.

If you are planning to buy your first home in Denver this year or next, you’ll want to take some time to get familiar with the local market.

According to a recent report from the real estate data company RedFin, Denver’s housing market is considered very competitive.

There continues to be a high level of demand for housing in the area, but limited inventory. It remains to be seen how inventory improves, and how this will impact sales activity and home price growth.

Advice for First-Time Home Buyers in Denver

But despite the competitive nature of the Denver real estate market, there are certain steps first-time buyers can take to improve their chances for success. We’ve covered three of the most important steps below.

1. Research the housing market before entering it

What’s the median home price in the part of Denver where you want to buy a house? What is the average of recent sales prices in the area? If you can’t answer these basic questions, you have some housing homework to do.

Sure, a real estate agent can answer some of these questions for you. But if you want to succeed as a first-time home buyer in Denver, you’ll need a basic understanding of current market conditions in 2023. This will help you move quickly when the right house comes along.

Market awareness will also enable you to create a smart offer based on current conditions. In a fast-moving real estate market like Denver, a strong first offer can make the difference between acceptance or rejection.

Fortunately, this kind of information is easy to find. You can find recent sales prices in your desired neighborhoods by using a website like Realtor.com or Zillow. Additionally, a simple Google search will yield all kinds of insight into the Denver housing market.

Here are 3 real estate market highlights, as of October 2023: 

  1. According to research market firm Zillow, the average price for homes sold in the metro area dipped to $562,400. That was a decrease of4.6 19.1% compared to October of last year.
  2. Home-price growth is possible over the coming months (despite the recent dip in prices) as mortgage rates are expected to dip over the remainder of 2023 and into 2024.
  3. Housing inventory is still tight in Denver. In fact, the city has been experiencing months of declining inventory. Inventory of homes is currently at a 2.7-month supply. As a result, first-time home buyers in Denver may have to put their best foot forward in order to snatch a home in Denver in 2023 or 2024.

2. Get pre-approved for a home loan.

Most first-time buyers in Denver use mortgage loans to help finance the purchase of their homes. If you fall into this group, it would be wise to get pre-approved for a mortgage loan — before entering the housing market.

Pre-approval is always a good idea. But it’s especially important in an active real estate market like Denver, where sellers are likely to receive multiple offers from buyers. Sellers have come to expect pre-approval letters from home buyers who are making an offer.

Pre-approval also gives you a sense of where your price range is, and what kinds of homes you can realistically afford.

3. Be prepared to compromise.

Real estate transactions usually involve some form of compromise. The Denver real estate market currently favors sellers over buyers, due to limited inventory and high demand. So, as a first-time home buyer in Denver, you’ll likely have to compromise on one or more factors relating to the house you want to buy.

You might have to compromise on the location. Maybe you have to drive a little farther for your daily commute. Maybe you have to go with your second-choice neighborhood instead of your first. These are common compromises for first-time buyers in Denver. Be open-minded and flexible regarding the location of your home.

You might have to compromise on price. First-time home buyers in Denver often have to make follow-up offers to negotiate the price. If the seller’s asking price is reasonable based on current market conditions, you probably shouldn’t quibble over “nickels and dimes.” Find common ground with the seller so the deal can move forward.

Flexibility, compromise and open-mindedness are welcome attributes during a real estate transaction. But they’re especially helpful for those who are buying a first home in Denver in 2023/24.

Need a Home Loan?

If you’re in the market to buy a home in Denver, Sammamish Mortgage is available to help. We offer a wide variety of mortgage programs and tools with flexible qualification criteria. We’ve been helping buyers obtain the mortgages they need in Oregon, Washington, Colorado, and Idaho since 1992, and we’d love to help you too. Please contact us today to get started.

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