Economic Overview

Unemployment in Colorado is 2.8% as of 05/23, down just slightly from last year after hitting a peak of 11.6% in 05/20 (for comparison, the pre-pandemic rate was 2.8%). Statewide continuing claims for unemployment hit a high of 265,499 for the week ended 5/16/20 (compared to a pre-pandemic level of 20,735) and are now at 18,807 for the week ended 07/01/23. In Pitkin County, the unemployment rate has been declining and the May unemployment rate was 4.9%, a year ago, it was 4.5%, and for comparison, pre-Covid in 05/19, it was 5.8%.

Labor markets throughout the country continue to be surprisingly strong, and Colorado is no exception, although recent data suggests a slightly slowing job market nationwide and locally.

Still, the overall labor market remains solid, and this unexpected resilience is causing recessionary expectations to be pushed further forward. The chances for the proverbial “soft landing” are rising, and with some luck on the inflation front, may be achieved.

Statewide, the June 2023 (latest data available) median price of a single-family home of $583,125 was 1.1% lower than June 2022, while the year-over-year average price was nearly flat at $725,408.

In the condo/townhome market, the year-over-year median price declined 2.8% to $418,170, and the average price decreased a meaningful 8.0% to $509,421. Through June, closed sales across the state are down 23.6%, while new listings have declined 21.3%. There were 17,376 active listings statewide at the end of June, down 8.1% compared to June 2022, representing a 2.3 month’s supply of inventory. Across the state, the percentage of list price received at sale fell to 99.7% (down from 102.1% at the end of June 2022), and days-on-market has increased to 37 days, up from 23 days last year.