Home Sale Prices In Denver, Colorado Are Trending Down For The First Time In Almost 5 Years

It seems like everyone these days knows someone moving to or living in Colorado. This isn't a mere coincidence; ample job opportunities, gorgeous outdoor scenery, and legalized marijuana are some of the biggest reasons people have flocked to Colorado in recent years (via Green Planet Movers). Between 2010 and 2018, the population of Denver grew by an average of over 1.81% every year (via Macrotrends). The city of Denver is still growing, but that number has now slowed to 1.22% in 2022.

While there are still benefits to moving to Denver, the flow of incoming people has decreased, and with it, the demand for houses has dropped. Denver is just one of the cities where home prices are starting to decline; across the nation, mortgage rates have hit an unsustainable high, leading potential buyers to hold out for better deals (via Forbes). If they want to cash in on their home investments, sellers now have almost no choice but to lower their prices. Depending on which side of the aisle you stand, the drop in Denver's home prices may seem like good or bad news, but the fact that they're dropping at all is newsworthy in itself. Here are the trends, according to House Digest data. 

Prices hit a low this August

The cost of homes in Denver has seen a relatively uninterrupted rise since 2018. At the start of 2018, the median cost of a home in Denver, Colorado, was $380,000. To some, that price may seem rather high already, but it's nothing compared to the median home price in the spring of 2022. In just a few short years, the median cost of a home in Denver soared to over $600,000. In 2021, prices stagnated for a few months but jumped again in the new year. Now for the first time in five years, home prices in Denver are finally seeing a steady decline, with the median home price dipping to $565,000 in August of 2022.

Buyers who invested in the booming area may now be concerned with their homes' declining value, but for those looking to transition from renting to owning a home in Denver, the dip in home prices could indicate a hopeful future. Rent in Denver can easily cost more than $1,950 per month, according to Green Planet Movers. In fact, the majority of the population can't afford to live within the city limits, opting for suburbs and outskirts instead. Although prices seem to be correcting, Denver homeowners can still rest assured that they've picked a great area to invest. Prices may ebb and flow, but the beauty of Colorado and the buzz of Denver will remain popular for years to come.