Colorado Real Estate Market Trends

22137_WWA-GardnerReportQ1_Masthead-WEB_Logo (1)

Q1

2022

w-angle-pattern-bar-desktop-light

Our Colorado real estate market data is updated quarterly to aid in your real estate forecasts. Historical Colorado real estate data and trends are included below the latest update. We break down our data by county, but we cover major cities in this Colorado including Denver, Aurora, Colorado Springs, and Fort Collins.

windermere-icon

Q1 2022 Gardner Report

Colorado
Real Estate Market Update

by Matthew Gardner

Below is the latest Colorado housing market trends analysis. Additional links:

Historical Colorado Data
Utah Data
Idaho Data
Other Regional Data

 

The following analysis of select counties of the Colorado real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

 

Regional Economic Overview

The most recent jobs data showed that by February of this year Colorado had recouped all of the more than 375,000 jobs that were shed due to the pandemic and had added an additional 6,000 positions. The recovery in employment was faster than I had expected, which has led me to revise my 2022 forecast: I now predict that the Colorado job market will increase by 4% this year and will add more than 112,000 new jobs. The state unemployment rate in February was 4%, which is well below the pandemic peak of 11.8% but still above the 2.6% average in 2019. Regionally, unemployment rates ranged from a low of 3.1% in Boulder to a high of 4% in the Colorado Springs and Greeley metropolitan areas.

Colorado Home Sales

In the first quarter of the year, 8,178 homes sold, representing a drop of 6.3% compared to the same period a year ago and 30% lower than in the fourth quarter of 2021.

Sales increased in 4 of the 12 counties covered by this report but fell in the balance of the market areas.

Similar to last quarter, low inventory levels continue to constrict sales. Listing activity was 17.3% lower than the same period in 2021 and 29.5% lower than in the fourth quarter of 2021.

Pending sales, which are an indicator of future closings, also declined, though the drop of 4.3% is not that significant. That said, unless we see a surge in inventory levels in the spring, second quarter sales may also be light.

A bar graph showing the annual change in home sales for various counties in Colorado between Q1 2021 and Q1 2022.

Colorado Home Prices

With limited inventory and rising mortgage rates, buyers were motivated, as demonstrated by the 14.9% increase in average prices compared to a year ago. Home prices in first quarter averaged $637,963, which is 4.5% higher than last quarter.

Boulder County continues to see average sale prices holding above $1 million. Although we have seen some softening in list prices, I expect this market to remain above the $1 million mark as we move through the year.

Year over year, prices rose by double-digits across all markets covered by this report, with a huge jump in the small Gilpin market.

With little in the way of choice for buyers—as well as a “fear of missing out” given rising mortgage rates—it’s no surprise there was such solid price appreciation. That said, there is normally a lag between rising rates and any impact on home prices. The second quarter should indicate if the jump in rates has had a softening effect on price growth.

A map showing the year-over-year real estate market percentage changes in various counties in Colorado for Q1 2022.
A bar graph showing the annual change in home sale prices for various counties in Colorado from Q1 2021 to Q1 2022.

Mortgage Rates

Average rates for a 30-year conforming mortgage were 3.11% at the end of 2021, but since then have jumped over 1.5%—the largest increase since 1987. The surge in rates is because the market is anticipating a seven- to eight-point increase from the Federal Reserve later this year.

Because the mortgage market has priced this into the rates they are offering today, my forecast suggests that we are getting close to a ceiling in rates, and it is my belief that they will rise modestly in the second quarter before stabilizing for the balance of the year.

A bar graph showing the average rates for a 30-year conforming mortgage, plus Matthew Gardner's mortgage rate forecasts for Q2 2022 through Q1 2023.

Colorado Days on Market

The average number of days it took to sell a home in the markets contained in this report fell four days compared to the first quarter of 2021.

The length of time it took to sell a home dropped in every county other than Gilpin compared to the same quarter a year ago.

It took an average of only 21 days to sell a home in the region, matching the previous quarter.

Compared to the final quarter of 2021, average market time fell in Clear Creek, Adams, Denver, Jefferson, and Arapahoe counties, but rose in the balance of the markets contained in this report.

A bar graph showing the average days on market for homes in various counties in Colorado during Q1 2022.

Conclusions

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

With Colorado on solid economic footing, I expect housing demand to remain strong even in the face of rising financing costs. Inventory levels remain very low, and new home construction has not expanded enough to meet demand, which continues to put upward price pressure on resale homes. The market appears to have shrugged off the jump in mortgage rates in the first quarter, but the full effects won’t be felt until later this spring. We’ll have to wait and see what impact, if any, there will be, but data on listing prices shows that home sellers remain bullish.

A speedometer graph indicating a seller's market in Colorado during Q1 2022.

Given all these factors, I am leaving the needle in the same position as last quarter. The market clearly still favors sellers, but we need a few more months of information to determine how rising mortgage rates may impact home sales and/ or prices.

About Matthew Gardner

Matthew Gardner - Chief Economist for Windermere Real Estate

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

w-angle-pattern-bar-desktop-dark
w-angle-pattern-bar-mobile-dark

Major Colorado cities covered in this report:

Denver

Colorado Springs

Aurora

Fort Collins

Lakewood

Highlands Ranch

Thornton

Arvada

Westminster

Centennial

Boulder

Greeley

Longmont

Loveland

Broomfield

Castle Rock

Parker

Colorado counties covered in this report:

Adams

Araphoe

Boulder

Clear Creek

Denver

Douglas

El Paso

Gilpin

Jefferson

Larimer

Park

Weld

w-angle-pattern-bar-desktop-dark
w-angle-pattern-bar-mobile-dark

Gardner Report Archive

Colorado
Historical Reports

2022
Q1 2022Colorado Real Estate Makret Trends

Q1 2022
POST | (PDF)

2021
Q1 2021 Colorado Market Trends

Q1 2021
POST | (PDF)

Q2 2021 Colorado Real Estate Market Trends

Q2 2021
POST | (PDF)

Q3 2021 Colorado Market Trends

Q3 2021
POST | (PDF)

Q4 2021 Colorado Real Estate Market Trends

Q4 2021
POST | (PDF)

2020
                    Colorado Real Estate Market Update

Q1 2020
POST | (PDF)

                    Colorado Real Estate Market Update

Q2 2020
POST | (PDF)

Market Trends Report Colorado Q3 2020. Click to view full report.

Q3 2020
POST | (PDF)

Q4 2020 Colorado Market Trends

Q4 2020
POST | (PDF)

2019
                    Colorado Real Estate Market Update

Q1 2019
POST | (PDF)

                    Colorado Real Estate Market Update

Q2 2019
POST | (PDF)

                    Colorado Real Estate Market Update

Q3 2019
POST | (PDF)

                    Colorado Real Estate Market Update

Q4 2019
POST | (PDF)

2018
                    Colorado Real Estate Market Update

Q1 2018
POST | (PDF)

content_18222_COLORADO_GardnerReportQ2_Masthead.png

Q2 2018
POST | (PDF)

                    Colorado Real Estate Market Update

Q3 2018
POST

                    Colorado Real Estate Market Update

Q4 2018
POST | (PDF)

2017
                    Colorado Real Estate Market Update

Q1 2017
POST | (PDF)

                    Colorado Real Estate Market Update

Q2 2017
POST | (PDF)

                    Colorado Real Estate Market Update

Q3 2017
POST | (PDF)

                    Colorado Real Estate Market Update

Q4 2017
POST | (PDF)

These Colorado real estate reports, data, forecasts, and market trends are provided for informational use. If you find it useful, please properly attribute this resource with a link. Colorado has several major metro areas including Denver, Colorado Springs, Fort Collins, Greeley, and Boulder.