Are you considering getting your real estate license and working as a real estate agent in Colorado?
Location is a critical factor in the real estate industry, and it affects realtors just as much as it affects their clients. Besides, an agent's ability to succeed in the business depends on their work ethic and area of operation.
In this post, we’ll analyze the 2023 Colorado housing market and discuss which cities in Colorado are best for real estate agents.
What is the State of the Colorado Real Estate Market?
One of the most robust long-term real estate investments in the U.S. historically is Colorado.
In 2023, Colorado continues to be a seller's real estate market, with forecasters expecting prices to rise. The Colorado housing market still has home shortages despite an increase in the number of homes for sale in 2022. Due to the imbalance between the number of homes available and homebuyers, sellers continue to have the upper hand in the current housing situation.
The Colorado real estate market is currently challenging for buyers because, despite low-interest rates, available inventory is down more than half from the previous year.
With this current situation, buyers must do everything possible to compete for the few available homes, resulting in price increases. Median home prices in Colorado in November 2022 were $576,900, an increase of 3.7% from the previous year.
For buyers, due to the ongoing increase in housing prices, the longer you wait to buy a property, the higher the price will be. Additionally, there is comfort in knowing that after you buy a home, its value will rise. For sellers, price growth is excellent news for your home's value.
In Colorado, more properties are expected to become available for purchase. Having more housing inventory available on the market is excellent news for buyers. Remember that there is still a limited quantity of properties, so be quick to present your best offer. Moreover, sellers should be ready for increased competition as more homeowners enter the property market.
What is the Average Real Estate Salary in Colorado?
According to Indeed, in Colorado, the average salary for a real estate agent is $101,011 per year, which is 7% above the national average. With the low being at $51,085 and the high at $199,732
Moreover, some of the most common benefits for real estate agents include the following:
- 401(k) matching
- Continuing education credits
- Dental Insurance
- Employee assistance program
- Employee discount
- Flexible schedule
- Health insurance
- Life insurance
- Mileage reimbursement
- Opportunities for advancement
- Paid time off
- Paid training
- Parental leave
- Professional development assistance
- Profit sharing
- Referral program
- Tuition reimbursement
- Vision insurance
- Work from home
What is the State of the Denver Housing Market?
In Denver, the median listing price for a property in December 2022 was $562.5K, increasing 7.1% from the previous year. The average listing home costs $355 per square foot. The median home sold price was $500,000.
While demand was at an all-time high, new listings on the market decreased by 5.26% over the year, according to the Denver Metro Association of Realtors (DMAR).
According to the Urban Land Institute and PwC's survey of 3,000 industry professionals, Denver came in at 13th place for overall real estate investment and development. Moreover, local real estate experts anticipate that 2023 will bring more stability to the Denver housing market.
Libby Levinson-Katz, head of the DMAR Market Trends Committee, forecasts that after 16 years of being seller-friendly, a balanced market is about to emerge. The usual real estate cycle in Denver lasts seven years and needs to be corrected.
What is the Real Estate Salary in Denver?
According to Indeed, in Denver, CO, the average salary for a real estate agent is $99,206 per year, which is equal to the national average. With the low being at $54,691 and the high at $179,951.
How Many Real Estate Agents are in Colorado?
There are currently 44,000 real estate licensed agents in Colorado. Less than half of those, or about 21,000, are currently active in the marketplace.
During the pandemic, millions of Americans left their jobs. However, one of the few industries to experience growth was real estate. According to The New York Times, In 2020 and 2021, more than 156,000 new real estate agents entered the industry, an increase of almost 60% from the previous two years.
Moreover, Google search trends predict more people will make that career change this year. Between January 2021 and January 2022, "how to become a real estate agent" was the most popular job-related search.
Best Places to be a Real Estate Agent in Colorado
Some of the most popular places for real estate agents in Colorado include:
- Colorado Springs
Let’s go into more detail.
Many people are relocating to Denver. According to labor statistics, this may be because it has a respectable job growth rate, is one of the healthiest locations to live in, and is also ranked among the most beautiful.
Although there will likely be plenty of competition, there will also be many opportunities for new real estate agents. The real estate boom is also quite natural, and the market for home sales can be unpredictable.
With a little under 400,000 residents, Aurora is renowned for its leading health care, outdoor recreation, and calm atmosphere. It's the third-largest city in Colorado and a terrific location to live since the Aurora locals care about their community.
However, the housing market in Aurora can be competitive, with homes in Aurora typically receiving two offers and selling after 26 days.
The median sold price in Aurora, CO, is $478,837, or $278/sq ft, based on all homes sold within the past year. In 2022, homes in Aurora sold for 15.3% more than they did in 2021. Aurora is a Seller's Housing Market, meaning housing prices in Aurora tend to be higher, and homes sell more quickly.
3. Colorado Springs
For both locals and real estate investors, Colorado Springs provides several advantages. Nearly 500,000 people (and growing) call Colorado Springs their home, located on the eastern side of the Rocky Mountains.
One of the most substantial long-term real estate investments in the US is in Colorado Springs. Colorado Springs real estate has grown faster than most US markets. Since the last decade, Colorado Springs's property values have increased by 143.7%, according to Zillow Home Value Index. The property prices currently stand at $492,383, up 21% in the last year.
The Colorado Springs home market continues to prove record-breaking even though the COVID-19 pandemic is still ongoing. There aren't many homes available, and the real estate market has hit record highs. In 2022, there were far fewer properties for sale than at the same time the previous year, causing a significant inventory shortage.
The real estate market in Colorado Springs is moving steadily upward and displays no signs of stopping. Prices are steadily rising, and there is a low number of available homes.
If you want to start your career in real estate in Colorado, sign up for one of our Colorado Real Estate License School Online courses today
Written and Published by: VanEd