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It is hard to believe that we’re already writing our year in review article for 2022. It seems like just yesterday we were writing our 2022 Denver Real Estate Market Prediction article. Even more surprising is that if you were to go back and reread that article, it would nearly wrap up how 2022 has played out.

Just like we predicted at the beginning of the year, Denver saw tremendous appreciation and demand early in the year. If you recall, it was not uncommon to see homes selling for $50,000 or more over list price and homes being sold as-is. This trend lasted through the first half of 2022. However, according to the stats provided by Denver Metro Association of REALTORS®, Denver’s values peaked earlier than we might have originally guessed. The highest average closed sales price in the Denver metro area happened in April and came in at $726,988*.

Even though April was the highest average closed sales price for 2022, that does not mean we’ve seen the market retreat since then. Over the next few months, it would drop slightly and then go back up. It was not until July that we started seeing a strong trend of downward values. In fact, August reported the lowest average sales price year-to-date at $657,284. Since August, that average closed sales price has stayed nearly flat, coming in at a nearly identical $657,610 for November. If we look at our peak values and compare them to our current average closed sales price, we see a loss value of just over 9.5% or $69,378. Now, before you start thinking all of 2022 was a loss when it comes to Denver metro home values, we need to look at where we started in January.

In January, our average closed sales price was sitting at $609,132*; this data was provided by the Denver Metro Association of REALTORS®. This would mean that even with a 9.5% depreciation since April, year-to-date appreciation is still at nearly 8% or $48,578. Now, obviously this figure is not as impressive as it would have been if we didn’t see the year end downward trend in values. However, when you consider that historical average annual appreciation for homes is 3-4%, 8% is still a great return for homeowners across the Denver metro area.

Another important factor to remember is that when coming up with these numbers, we are looking at all closed transactions across the Denver area. This would include the highest of the high sales and the lowest of the lows. What we have personally seen across the market is a higher percentage of downward value on below average valued homes (i.e., homes valued in the $500,000 to $600,00 range) than those homes in the higher price points. So, depending on where your home’s value sits, you might have seen higher or lower appreciation and depreciation throughout the year. If you need a more exact idea of your home’s new valuation, request a TK Homes in-depth market analysis today.

Denver’s low inventory at the beginning of 2022 and lower interest rates played into huge appreciation early on in the year. However, once higher interest rates entered the market, buyers choose to bow out of the market, causing inventory to rise and values to dip. As we wrap up the year, it is looking like early appreciation was able to beat out late year depreciation and give homeowners across Denver a year-to-date increase in value by nearly 8%. Now, what will happen in 2023 with Denver’s real estate market is another story, a mystery we will have to continue to investigate and unveil as we head into the New Year. However, rest assured that TK Homes will be there to continue to help you achieve your real estate goals, regardless of what the market does.

~ Article written by Team Leader & REALTOR®, Trevor Kohlhepp

* Closed sales price represents closed residential (detached plus attached) transactions.