March 2024 Market Update
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It was an eventful month with the announcement of the National Association of Realtors® settlement of the on-going litigation in the Sitzer-Burnett case, says the Denver Metro Association of Realtors’ Market Trends Committee.
As we navigate potential changes to our real estate market together, the Denver Metro Association of Realtors® will continue to communicate with its members as more information becomes available.
While we as Realtors® wait for additional updates, the Denver real estate market didn't skip a beat this month as we head into the spring selling season. New listings jumped 16.27 percent month-over-month to 4,932 properties which was a slight dip of 3.28 percent from this time last year. Active listings at month's end also increased by 6.13 percent, while the year-over-year numbers increased by 29.52 percent showcasing that inventory is slowly building. Of note, the active listings at month's end of 5,849 were 1.26 percent above the year-to-date number of a pre-pandemic March 2020.
The median close price rose 3.48 percent to $595,000 as we continue the ascent in prices that historically reach their peak in June and take a downward trajectory through December as shown on page nine. Notably, the price increases both month-over-month and year-over-year represent a more normalized price increase versus the double-digit Covid increases we saw. The median days in MLS fell 52.17 percent from 23 days in February to 11 days. Both the increase in median closed price and days in MLS showcase that buyers are out there and eager for the new inventory as they placed properties under contract twice as quickly as they did in February.
Pending sales increased 31.94 percent to 4,317 properties, a 7.47 percent gain year-over-year. However, closed sales only increased 13.40 percent to 3,512, a fall of 13.37 percent from the 4,054 closed sales from March of last year. Saying that, closed transactions are a lagging indicator, meaning that most closed transactions in March were likely written in February. Given the rise in pending transactions, I expect to see a jump in closings reported next month.
The most active price segment for detached properties continued to be the $500,000 to $749,999 segment with 1.277 closed sales and 1,573 active listings. The most active price segment for attached properties continued to be the $300.000 to $499 999 with 364 closed sales and 765 active listings.
As we head into the warmer months, sellers have resigned themselves to the elevated interest rates and have begun to take the golden handcuffs off. In many cases, these sellers have chosen to downsize. The goal for these sellers is to sell their home and use the equity in their home to either purchase the next with their current equity or to obtain a significantly smaller loan. Regardless of their plans, buyers are very happy to see additional inventory.
Learn more about the market from the Denver Metro Association of Realtors.
