Now that we have the full statistics from the full year in 2023, we can look at the overall trends and how it compared to previous years. While the first half of 2023 was looking a lot weaker than the previous year, the market finished fairly strong in the second half. As far as transactions, the second half of 2023 actually tracked pretty closely with the previous year.
While the total number of transactions and sales volume were down 15% and 13% respectively from 2022, the supply matched the demand and prices not only held steady but actually increased. The overall average residential price ended at $1,355,177, which is a 2.19% increase year over year. Broken out by type, single family homes were up 1%, multi-family 6%, and vacant land 2%. We saw a very steady increase in the single family home average price in the last 6 months of the year, causing that indicator to go from a 2% decrease from 2022 mid year to a 1% increase at the finish.
January stats show a strong start to the year, so we are hoping that will continue. Interest rates are predicted to possibly start to go down in the spring. When that happens we should see an increase in listings with more sellers willing to move, but also more buyers willing to take action. There has been both pent up demand and supply so in our market those will likely balance each other out and not cause a major swing in the market.
Especially since many of our second homeowners are not desperate to sell, the most likely scenario is that sellers will continue to have the upper hand. As you can see in the charts below, our inventory has remained low even with the high interest rates, and in 2023 42% of our transactions were all cash. We are still seeing multiple offers on a regular basis for well priced listings.
I have included several charts below to give you some data and visuals on the current and historical market. The stats vary for different price ranges within the market. While we have seen a decline in high-priced sales (defined as $1M+), we are still seeing more of those than we ever did in any year before the pandemic.
I also included a summary of where our buyers come from, which is a common question. In all of 2023 there were only 4 international buyers, so that is not a significant segment of our market. 28% of our buyers were local. 38% were from within Colorado, and the remaining 34% were out of state. Of those non-Colorado buyers, more come from Texas than any other state, with more than the next 4 states combined. The next three largest markets are Florida, Illinois and Missouri. California is next in line, but does not make up a majority of our buyers, as many people think. You can see the full breakdown below.
Once again, a huge thank you to Land Title for providing all of this info every month!
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