The Current State of Denver Real Estate - June 18, 2024
For the month of May, housing data for the Denver Metro area market has 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. This marks a notable milestone, as it signifies a return to pre-pandemic levels of active listings. With the number of new listings added, this marks the fifth consecutive month of growth for new listings. Although the number of properties going under contract remained steady, year over year, with the increase in listings to choose from, the market has definitely turned the corner and is now trending towards a Buyer’s market in most instances.
Despite the inventory shift, closing prices held firm, increasing 2% year-over-year. However, it is noted that Sellers are paying for buyer’s closing costs, or are oftentimes reducing their original list price in order to attract buyers. The median price is up in my opinion 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. Closings in the upper sales end, were up 22% year over year, with an average of just 8 days on the market.
The housing market in Denver is reflective of national trends. With interest rates still in the upper 6%’s or low 7%’s range, consumer sentiment towards home buying was at a record low with only 14% believing it’s a good time to buy. In the Metro area, not only are buyers dealing with rising 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.
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.