The Current State of Denver Real Estate - July 17, 2024

Where to start? In May of this year, housing data for the Denver Metro area market had more homes actively available for sale than we’ve seen in nearly five years. The number of new listings rose 27% year over year with existing inventory, jumping 65% year-over-year to 9,029 units. That was a notable milestone, as it signified a return to pre-pandemic levels of active listings. So you would think with more homes on the market, you would have more sales. Well, it didn’t work out that way. You had fewer homes pending and nearly 500 fewer homes closed for the month of June. July isn’t looking any better with typical slower activity for the month, as home buyers try and get that last summer vacation in before school starts in August.

The median price did increase by $5,000 year over year, but again most of that was due to the increase in home sales in the $1-2 million dollar price range, not due to an increase in prices in the median price point. Sellers are dropping their prices, days on market are increasing and inventory has increased by two months worth. Expect to see prices drop even more for the month of July and inventory continue to increase.

Affordability is still the major reason for the decline in sales. In the Metro area, not only are buyers dealing with continued higher interest rates, they are also dealing with much higher homeowner’s insurance costs as well as property taxes. The affordability factors are real, especially with other inflationary pressures on just about everything else the consumer needs to purchase too. Overall, the Denver Metro housing market is definitely transitioning towards a more balanced market. While buyer activity remains healthy, in the upper and lower price points, the significant rise in inventory suggests a potential cooling off period for the previously seller-dominant market. From what I’m hearing on the “streets”, people are holding off with the hopes that interest rates will decrease as we near the 2024 election.

If you are in the market for a new home, or are interested in selling, please contact one of us at The Tucker Team. We know the market and can provide expert advice as to the recent trends and have the experience to help you purchase the home of your dreams, a savvy investment property or help you get top dollar when selling.