When Is the Best Time to Buy a House in Colorado?

Home of the “Mile High City,” Rocky Mountain National Park, and ski destinations, Colorado boasts beautiful weather and four seasons. It is the perfect home for anyone wanting an abundance of outdoor recreation, mountain views, and a sense of history paired with modern culture. If you’re considering a move to The Centennial State, when is the best time to buy a house in Colorado?

We talked to Colorado real estate agent Johnna Hall, who works with over 79% more single-family homes than the average agent in her Aurora market. Let’s take a look at Hall’s insights and the factors that affect when to buy.

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Inside the Colorado home-buying market

After two years of incredible growth that included skyrocketing prices and quickly moving inventory, the Colorado real estate market is seeing signs that things are leveling out. Across the state, the market is shifting from a hot seller’s market to a more stable, but still seller’s market.

But even with this trend, markets are highly local, and now is a good time for buyers to jump in. Underscoring its popularity, Colorado ranked 21st in the nation for inbound migration in 2022, which resulted in a population increase of 0.5%, according to data on net domestic migration from the National Association of Realtors.

With seven metropolitan areas that include Colorado Springs, Fort Collins, Greeley, and Boulder, as well as the combined metropolitan area of Denver-Aurora-Lakewood, seven micropolitan areas, including Glenwood Springs and Steamboat Springs, and many rural locations, the market can vary widely depending on where you are looking to buy. But there are some consistent trends across the state that give some indications of the best time to buy a house in Colorado.

When is the best time of year to buy a house in Colorado?

Nationwide, summer is often cited as the most expensive time to buy a house. For this reason, many industry publications will advise that you buy in January or February for a better price. But in Colorado, the best time to buy depends on your goals and priorities. It also depends on the current state of the market, which after the pandemic, is still leveling out.

Historically, Hall says that the best time to buy was between July and December, but “there are opportunities in our current market that are making right now a pretty good time to buy.”

Let’s take a look at some cities in Colorado to see when the best time of the year to buy a house is.

Colorado Springs

The median sale price in Colorado Springs was $465,000 in February 2023, with homes staying on the market for an average of 54 days, up 122.4% from February 2022. Last year saw seven months where homes sold for below the average sale price, with homes that sold in November selling for 13.47% below average.

Denver

The Denver Metro area saw a median sale price of $535,500 in January 2023, and homes stayed on the market for a median of 35 days. In 2022, the months with the highest percent of below-average sale prices were January through March and August through October, with homes sold in August going for 14.96% below the yearly average.

Fort Collins

In Fort Collins, the median sale price in February 2023 was $575,000, with homes staying on the market for an average of 52 days. In 2022, homes sold for below the average in seven out of 10 months. In January 2022, homes sold for 18.80% below average.

What is the best time to buy in Colorado for the lowest price?

The median sales price of homes in Colorado typically goes up in the summer, as it does in many markets. But according to Hall, the best time to buy for the lowest price depends on a number of factors, including local inventory levels and interest rates.

While the amount of available inventory — two to three month’s worth, according to Hall — indicates that it is still a seller’s market — a balanced market would have four to six months of available inventory

As interest rates rose throughout 2022, the demand for housing cooled, allowing the prices to level off and even decline in some areas. The cooling demand has led to the return of negotiations between buyers and sellers as well as fewer multiple-offer situations.

Homes are sitting on the market longer, which allows for more time to make a lower offer and possibly get the house for less than asking price. In January 2023, homes in Colorado were selling for 97.8% of the list price, down 3.2% from the previous January.

What’s unique about the Colorado housing market?

One thing that makes Colorado a unique state to buy a home in is its low property tax rate. Colorado ranks third for the lowest property tax rate in the nation, with an effective real estate tax rate of 0.51%. In addition, Colorado’s tourism industry saves every Colorado household $670 in annual taxes due to the state and local taxes paid by visitors.

Is it a good time to buy a Colorado house in the current market?

According to Hall, now is actually a great time to buy! Let’s take a look at where we’ve come from in the past few years, to get a better understanding of why this is true.

Data from the Colorado Springs market shows that in January 2023, homes stayed on the market for an average of 54 days. The previous January had homes staying on the market for just 13 days. There was also a 196% increase in active listings jumping from 487 in February 2022 to 1,443 in February 2023, and the median sales price settled at $465,000.

Even though interest rates have risen significantly since the historic lows offered during the pandemic, the higher interest rates combined with slightly lower prices have leveled out demand and allowed for some pre-pandemic norms to return.

Hall says that the higher interest rate environment that we’re currently in actually comes with some advantages. “Prices have come down quite a bit,” she notes. “Buyers are less likely to compete with other buyers. Right now, they have time to see and compare homes. They can negotiate on the price a little bit more.”

She goes on to say that buyers now “can sometimes receive seller concessions that can be used to buy down their interest rates, and then they’re not waiving important contingencies that they’ve had to waive in the past couple of years.”

Current interest rates are hovering around 7% for a 30-year fixed-rate mortgage and around 6% for a 15-year fixed-rate mortgage. But as the year goes on and inflation slows, interest rates have the chance to come down, leaving even more room for buyers to take advantage of home prices that are beginning to decline — though are still higher than pre-pandemic prices.

But don’t let today’s shifting interest rates keep you from moving forward with your goal to buy a home in Colorado. With guidance from the right professionals, you can make it happen. And if rates fall, you can consider refinancing.

What’s the best way to get started buying a house in Colorado?

The best way to get started buying a house in Colorado is to get matched with a knowledgeable top-performing agent through HomeLight’s Agent Match platform, where we’ll help you find the perfect agent for you in less than two minutes. Our short Buyer Quiz can also help you assess where you are in the buying process and offer next steps.

Once you’ve selected an agent, you can work closely with them to find homes that meet your budget and criteria in Colorado.

»Learn More: Questions You Should Ask Before Hiring a Real Estate Agent

How does weather affect house prices or sales in Colorado?

Denver has long boasted 300 days of sunshine a year, and while modern technology has revealed that they actually see 245 days of sunshine, they still land in the top 20 sunniest cities in the U.S. But Hall doesn’t see the weather affect home prices or sales as much as the amount of available inventory does.

What are the best cities to buy a house in Colorado?

When people think of Colorado, Denver probably comes to mind. And with good reason. Denver boasts an abundance of outdoor recreation and entertainment, along with stunning mountain views and gorgeous weather. But Denver, along with the other major metropolitan areas, consists of a number of suburbs, each with their own unique features, attractions, and amenities.

Here are a few of the best cities to buy a house in Colorado:

•  Holly Hills: Many families and retirees make up the Holly Hills population of just 2,843. The unincorporated urban community is located about 10 miles southeast of Denver.
• Palmer Lake: Part of the Tri-Lakes region between Denver and Colorado Springs, this suburb of Colorado Springs offers highly rated public schools and is populated by families and young professionals, most of whom own their homes. With a population of 2,652, it offers a feel of both suburban and rural areas.
• Prides Crossing: This Aurora neighborhood of 11,832 offers lots of parks and a suburban feel. Home to families and young professionals, Prides Crossing wraps around Quincy Reservoir, which offers fishing and walking trails.

How else might I get a better deal on a home in Colorado?

• Be patient: Hall says that being patient can get you a better deal on a home, and even just “waiting after that first weekend on the market” can give buyers an advantage because “sellers can get so nervous when they haven’t sold in a week.”
• Ask for off-market opportunities: Your agent may be able to find you an off-market property so that you can get a better deal compared with one that’s already been listed. Ask your agent to let you know if they hear of places that may be available before they are listed on the multiple listing service (MLS).

Bottom line: When is the best time to buy a house in Colorado?

Hall recommends buying a home as soon as you can. In Colorado, there is typically low inventory because “demand is still pretty strong for people wanting to live here and relocate here.” She also points out that “the sooner you can become a homeowner, the better, for people building their wealth.”

Choosing a trusted Realtor® who can find you the right opportunity is a great first step to buying a home in Colorado. The best time to buy a house in Colorado really comes down to finding the best situation for you and your needs and being in a position to take advantage of it when the time comes.

Header Image Source: (Kevin Bree / Unsplash)