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

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.

The amount of available inventory — just over two months’ worth, according to the Colorado Association of Realtors (CAR) — indicates that the state is still a seller’s market. For context, a balanced market would have five to seven months of available inventory.

Higher interest rates in 2023 and 2024 have dampened housing demand. Home sales were down 8.2% year-over-year in March 2024, although prices remain high (up 4.1%) because of low inventory levels. Traditionally, cooling demand has led to more negotiations between buyers and sellers and fewer multiple-offer situations. However, single-family homes in Colorado are still selling close to asking price, fetching 99.2% of the listing price. This is a 0.2% increase from the same period last year.

Compared to the pandemic housing boom, when Colorado homes were going under contract in 25 or 30 days, the median days on the market has stabilized at 56 days, giving buyers more time to shop around.

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 0.49%. In addition, Colorado’s tourism industry saves every Colorado household $763 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?

Let’s take a look at where we’ve come from in the past few years to get a better understanding of what’s currently shaping the Colorado real estate market.

Low interest rates secured during the pandemic (typically 2%–3%) are keeping many homeowners in Colorado and across the country on the sidelines of the housing market. This reluctance to sell has resulted in low inventory, which in turn has pushed home prices higher. Buyers are now facing a challenging market with limited options, high interest rates, and inflated prices.

Hall says that the higher interest rate environment that we’re currently in actually comes with some advantages. “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.”

Hall 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.” With homebuyers paying premium prices, they want to make sure their investments are sound by doing their due diligence.

Current interest rates are hovering just above 7% for a 30-year fixed-rate mortgage and around 6% for a 15-year fixed-rate mortgage. The Fed has hinted at three cuts to its key interest rate this year despite inflation ticking up in January and February. If that were to occur, interest rates could come down slightly by the end of the year, easing some of the pain Colorado homebuyers are feeling.

But don’t let today’s shifting interest rates keep you from moving forward with your goal of buying a home in Colorado. With guidance from the right professionals, you can make it happen. 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.

How does weather affect house prices or sales in Colorado?

Colorado 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 state’s best suburban communities to buy a house in:

•  Holly Hills: The unincorporated urban community of Holly Hills, located about 10 miles southeast of Denver, has a population of around 2,800 residents. It’s a community that primarily attracts families and retirees.
• 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 around 2,600, Palmer Lake offers a unique blend of suburban and rural living.
• Prides Crossing: This Aurora neighborhood of approximately 12,000 residents boasts beautiful 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 that offers a better deal than 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. There is typically low inventory in Colorado 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 real estate agent 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 comes down to finding the best situation for you and your needs and taking advantage of it when the time comes.

Header Image Source: (Lena Derevianko / Unsplash)