April 2024 Market Report

Spring bulbs have made their colorful return, and trees across Denver are in full bloom, says the Denver Metro Association of Realtors’ Market Trends Committee.

Optimism in the Denver real estate market is as strong as ever due to resilient buyers who continue to place properties under contract quickly when they find the right home, at the right price.

The most apparent change in the market last month was the rise in inventory. While buyers continue to grapple with financing pressures, they finally have more choice thanks to sellers who are back in the market listing their properties. Active listings climbed 19.51 percent month-over-month and 51.32 percent year-over-year to 6,990 listings. This is a notable year-to-date increase of 51.30 percent from 2023 and a 118.16 percent increase from 2022. New listings increased 21.22 percent month-over-month and 25.42 percent year-over-year to 5,980 listings. Pending sales increased marginally with 4,468 properties, an 8.32 percent increase month-over-month and a 5.53 percent increase year-over-year. The most significant metric was closed sale data with 3,739 properties closed, a mere 1.66 percent increase month-over-month and a 4.79 decline year-over-year. While this data point is a lagging indicator of pending sale activity from March, it showcases that buyers are not absorbing the inventory as quickly as they once were.

The increase in inventory is a very welcome turn of events for buyers who have been dealing with historically low inventory for years. Additionally, it's a nice surprise as many sellers have been hesitant to list their homes in favor of maintaining their low two to five percent interest rates. The increase of active listings to 19.51 percent represents a healthy increase as the historical average increase in listings from March to April is 10.32 percent.

As inventory increased, buyers eagerly purchased new properties as days in the MLS dropped 27.27 percent to eight days. The median price rose 1.27 percent to $602,550 while the average price hit a new record of $727,700.

Detached and attached properties experienced a similar increase of over 19 percent for active listings month-over-month: 19.65 for detached and 19.21 percent for attached. Of particular note, active listings for attached properties jumped 66.62 percent year-over-year. New listings in the detached market segment rose 25.46 month-over-month, while the attached segment rose a mere 11.04 percent. Pending sales for detached homes jumped 11.14 percent month-over-month, whereas the attached market saw a minimal rise of 0.37 percent. Attached property inventory is clearly outpacing the detached market, which presents further opportunities for buyers interested in attached condos and townhomes.

Saying that, detached homes are still considered a seller's market with less than three months of inventory. The months of inventory then jump to 4.32 months of inventory when we look at properties priced at $2 million and over. On the other side of the coin, attached homes priced below $750,000 remain a buyer's market. However, properties priced from $750,000 to $2 million are in more of a balanced market with three to six months of inventory. For attached properties priced at $2+ million the month's of inventory substantially increases to 7.75.

Inventory will continue to climb through May, so pricing conservatively has never been more important. Buyers on the hunt for their next property will likely choose the one priced at fair market value, with very little work needed. This is not the time to push the price or to place a home on the market to see if you can obtain the price you hope to achieve.

Read below for a price range breakdown for properties sold between $750,000 and $999,999 from Market Trends Committee Member and West + Main Homes Agent, Nick DiPasquale.

Learn more about the market from the Denver Metro Association of Realtors.

March 2024 Market Update

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.

February 2024 Market Report

As the spring selling season kicks off, the question on everyone's mind is whether the luck of the Irish translates to the Denver real estate market, says the Denver Metro Association of Realtors’ Market Trends Committee.

Some buyers and sellers may appear lucky, but don't let appearances fool you. They had a strategy in place with their Realtor® to ensure the odds were in their favor.

Well-informed and educated sellers know interest rates have ticked up again; however, they also know that many buyers are experiencing spring fever and are sick of sitting on the fence watching home prices increase. So, savvy sellers got their property on the market and knew how to stand out. In fact, new listings increased 29.12 percent month-over-month and 22.63 percent year-over-year. But these sellers also knew they had more to compete with as active listings at month's end rose 13.14 percent to 5,511 homes, an astounding 45.87 percent gain year-over-year.

Serious buyers are discerning and know inventory is growing. Pending sales rose slightly by 12.70 percent month-over-month to 3,514, showcasing that buyers are taking their time to choose the right home for their needs. As a result, sellers who are winning in this market spent time making sure their homes are in show-ready condition. Clutter has been removed, HVAC systems have been serviced, windows have been washed and sewer lines have been cleaned. In short, if sellers executed their plan correctly, they experienced multiple offers and maximized their profit.

Buyers, on the other hand, have a different strategy. While some were swept into multiple offers on their dream home, others understood they may find gold at the end of the rainbow if they broadened their search parameters. These buyers understand that more inventory is coming to the market and that they will have options. They are also aware that they can negotiate on price and terms up-front, as well as negotiate at inspection ... and negotiate is what they are doing. Difficult inspections have been on the rise over the last few months. If buyers feel they are paying top dollar due to increasing mortgage rates, they want their new home to be in move-in-ready condition and are making sure the seller handles deferred maintenance before closing.

Conscious buyers have another new strategy in their playbook. Home insurance availability has become a serious issue across the country for homeowners, Denver included. As such, buyers are considering home insurance concerns before submitting an offer. They are reaching out to their insurance providers to verify they can obtain coverage in their desired area of town. They are then obtaining a CLUE (Comprehensive Loss Underwriting Exchange) Report, which details past claims and uncovers potential hurdles before submitting an offer to help facilitate a smooth transaction. This is invaluable information as some insurance providers are declining coverage, even in Metro Denver, which can easily derail a transaction.

The spring season is heating up, and the best way to find your treasure is through thoughtful strategy. Prepared sellers can curb a second round of negotiations with buyers at inspection, while strategic buyers know what they want before shopping and the options available to them.

Learn more about the market from the Denver Metro Association of Realtors.

December 2023 Market Report

This time of year, we enjoy reflecting on a closed chapter while holding optimism for what may transpire in the year ahead, says the Denver Metro Association of Realtors’ Market Trends Committee.

Last year, the Denver real estate market was challenging. We dealt with a lack of inventory and interest rates that seemed to go up daily. Despite these issues, buyers and sellers found a way to come together in a stabilizing market. Sellers said goodbye to multiple offers received in a weekend, and buyers were finally able to negotiate. As mortgage rates continue to decline, we all want to know what the Denver real estate market has in store this year.

If rates continue to decline, I expect to see more buyers enter the marketplace. There has been significant pent-up demand from both buyers and sellers over the last two years who have been interest rate adverse. If demand increases, this will ultimately provide some pressure on home prices. While I do not think we will see the same upward pressure on prices that we saw a few years ago, prices will continue to rise. If demand spikes, inventory will grow throughout the year as sellers find comfort in making a move with more reasonable financing options. Additionally, I expect the selling season to start earlier this year than last. With pent-up demand, more favorable lending terms and warmer temperatures than last year, there is nothing stopping buyers from getting out there.

Although interest rates started their descent in November, December numbers stayed consistent with Denver's seasonal rhythm. Month-over-month the median close price dropped 2.8 percent to $551,993, while closed sales dropped 7.65 percent to 2.620. Most notably, the median days in MLS jumped 31.82 percent from 22 to 29 davs.

However, the outlook is more positive if we compare the numbers to this time a year ago with the same seasonal factors. Year-over-year new listings declined by only nine homes from last year with 1,725 new homes for sale, and pending sales increased 10.87 percent to 2,471 homes. The median close price jumped a little over $1,000 and median days in MLS decreased slightly from 30 days last year to 29 days.

The performance was better for single-family homes year-over-year with new listinqs increasing 4.33 percent and pending sales rising 12.98 percent. The median close price increased 2.25 percent from $600,000 to $613,500, the close-price-to-list-price ratio increased to 99.55 percent, and median days in MLS declined from 32 to 29 days.

Conversely, attached homes were a bit more sluggish vear-over-year with new listings down 10.77 percent, closed sales declining by 10.57 percent, median days in MLS increasing to 30 days and the close-price-to-list-price ratio declining to 98.53 percent. However, interest rates helped pending sales with a 5.95 percent increase and the median close price rose 2.46 percent to $418,701

As previously noted, 2023 performed most similarly to a pre-pandemic 2019. While new listings and closed sales were both higher in 2019, a higher median close price of $580,000 last year kept sales volume similar with only a 0.76 percent decline. Similarly, while inventor continued to climb each month, active listings at month-end declined slightly by 1.31 percent while median days in the MLS landed at 12 days versus 13 days in 2019

National predictions indicate a slight increase in inventory with prices staving relatively stable. Historicallv, Denver does not follow national trends and predictions, often outperforming the rest of the country. Ultimately the traiectory of the vear is dependent upon interest rates and consumer confidence.

Learn more about the market from the Denver Metro Association of Realtors.

November 2023 Market Report

With the holidays upon us, we are focusing on the gift of homeownership this season, says the Denver Metro Association of Realtors’ Market Trends Committee.

Owning a home provides stability and security for many families. It is also the single largest investment most people make in their lifetime, which serves as the single best vehicle to attain individual and generational wealth.

For buyers, the gift this season is growing inventory. Active listings at month's end increased 6.89 percent year-over-year to 6,684, new listings rose slightly by 1.04 percent to 2,717 and closed sales dropped 13.98 percent. During this time of year, I prefer to look at the month-over-month data as this holds more weight. If we look at the month-over-month data, active listings dropped 10.67 percent and new listings dropped 28.93 percent. However, that doesn't paint a true picture of our market as the Denver Metro Area is seasonally based, which means that we typically see a decline in inventory this time of year. As such, the increase in homes for sale provides the gift of choice.

Speaking of gifts, this is my absolute favorite time for buyers to get out and shop for homes. Sellers whose properties are on the market typically need to sell and are more willing to negotiate than in March or April when the market is at its peak. Additionally, the competition from other buyers drops considerably. As such, buyers who can see the beauty of buying a home right now have their choice of home and can negotiate their way into their dream home.

The opportunity for buyers continues as we look at the close-price-to-list-price ratio-which can be a bit deceiving. This number continues to hold strong at 98.56 percent; however, we do not track concessions in this report. What we know in the in-dustry, but don't publish here, is that sellers are currently negotiating significant amounts towards lender buy-downs to help buyers ride the wave of high interest rates while keeping the sales price fairly static. I received a marketing piece recently showcasing that a seller of a higher-priced property was willing to offer $100,000 in incentives.

Sellers aren't left in the cold this season as they have some gifts coming their way as well. They have time to prepare their homes and mindset for the marketplace as homes are taking longer to sell. The median days in the MLS has grown to 22 days, which is up an astounding 37.50 percent month-over-month. While December is typically overrun by the holidays, this is actually a great time to get some of the deferred maintenance items completed while vendors are slower. They can also set a new frame of reference for life once their home hits the market. If your home sells in one week, great. But if it takes three months, that's okay, because it's normal activity and can help alleviate concern.

Additionally, interest rates are starting a downward trend, and we as Realtors® know that if rates continue to drop then demand will increase. In fact, many agents saw a flurry of activity last month when rates dropped buoying end-of-year activity. Depending on where rates trend, we may see bidding wars back before we know it.

The gift I'm most excited about is the ability to slow down and find balance. The shifting market this year has thrown all of us off kilter but the 2023 data aligns similarly in many ways with the pre-pandemic real estate landscape of 2019. The market is finally finding a sense of equilibrium after three years of record-breaking stats. While we don't know what the New Year has in store for us, it's helpful to take a moment and appreciate the gifts available in our marketplace.

October 2023 Market Report

“While Halloween may be behind us, the unprecedented year of increasing interest rates has made this year feel a bit spooky”, said the Denver Metro Association of Realtors Market Stats Committee.

However, as we enter into the holiday season, the market experts remain grateful for the unique opportunities available for both buyers and sellers in this market.

Despite a shifting market and general uncertainty, people are still buying and selling homes. In the Denver Metro area, it is rare to see inventory rise toward the end of the year, as we tend to see the lowest inventory numbers within the last two months of the year. Of particular note, we've surpassed the inventory numbers year-over-year. New listings dropped 16.84 percent to 3,816 month-over-month; however, this drop is normal due to seasonality and, more im-portantly, is down 0.65 percent year-over-year. Active listings at month-end finished at 7,482, up slightly by 2.63 percent from this time last year. Pending sales are up slightly from this time last year, up 1.76 percent.

A helpful guiding principle is to look at historical data as opposed to getting hysterical. If you look at the year-to-date numbers on page 13, this year performed most closely to pre-pandemic levels of 2019. Sales volume is over $24 million, median days in the MLS is at 11 for 2023-which is just one day shy of the median in 2019-and the close-price-to-list-price ratios are both over 99 percent, while pandemic years were over 103 percent.
Ultimately, sellers need to get the pandemic years out of their minds. That time frame was a perfect storm of low interest rates, unprecedented demand while residents fell out of love with their homes working from home and the ability to literally work anywhere was a novel idea. As employees are called back to the office and interest rates hover around eight percent, the party is over. Sellers need to focus on value and put themselves in the buyer's shoes. Buyers are no longer willing to overpay and, as such, pricing is the number one key in this market to sell a home.

Buyers on the other hand are sitting in a unique position, and some know it. While overall mortgage applications are low, hard money loans are on the rise as well as gifted funds from loved ones to help bridge the gap towards home owner-ship. This may be surprising, but December is historically a busy time of year, and increasing inventory is finally providing buyers with the gift of choice. Many buyers tend to hibernate for the winter. But for those who continue to look through the holiday season, there is less competition and sellers are usually more motivated to sell before the end of the year.

For buyers who feel priced out of the housing market, an alternative tactic is to look at other markets that are within their budget. Non-owner-occupant rental properties are a great option to find a way into the housing market. Regardless of the path, buyers are gaining more control in this market as time goes on.

At the end of the day, properties will continue to trade hands for the right price and terms. Interest rates can be daunt-ing; however, the key is to get onto the escalator of homeownership and experience appreciation as it moves upwards over time.

Learn more about the market from the Denver Metro Association of Realtors.

September 2023 Market Report

The Denver Metro Area historically leads National trends, according to DMAR's Market Trends Committee.

While the market was unpredictable this spring, we are seeing the traditional seasonal slowdown in residential sales as fall takes over.

This month's data indicates a shifting market. New listings dropped 5.92 percent to 4,589 homes, while active listings at month's end rose 11.24 percent to 7.629 listings. Pending sales also fell 9.29 percent, closed sales declined 20.88 percent and, as such, sales volume declined 20.88 percent. Months of inventory jumped 47.24 percent to 2.4, while median days in MLS jumped 27.27 percent to 14 up from 11 days last month, which notably is a 12.5 percent decline year-over-year. I want to point out, however, that while inventory is growing, the median price point also grew 0.69 percent up last month to $585,000, which is also an increase year-over-year of 0.86 percent. Additionally, the close-price-to-list-price ratio was up 0.31 percent year-over-year to 99.19 percent.

While these are marginal changes, this small indicator showcases that prices are still strong in the Denver Metro Area. Buyers aren't generally haggling on price; however, they are asking for concessions, which is a data point this report does not track. As most Realtors® know, concession requests from buyers have been on the rise since the beginning of the year as they have made it easier for buyers to navigate this market.

Buyers and sellers continue to find common ground and people are moving every day for a myriad of reasons. One group that is leading the charge with new loan applications is first-time homebuyers. They aren't tied to historically low interest rates and feel the freedom to move as the current interest rates are all they know. Additionally, they understand that purchasing a home is a faster way to build wealth and gain equity as opposed to paying their landlord's mortgage. They are keenly aware that properties are sitting on the market longer, and sellers are often making multiple price reductions, providing first-time homebuyers with the leverage to ask for concessions.

In many ways, this is the perfect market for first-time homebuyers to seize opportunities. While interest rates are high, these buyers can negotiate instead of jumping into bidding wars where they might pay 10 percent over the asking price to secure a property like many did over a year ago.

August 2023 Market Report

The Denver Metro Area historically leads National trends, according to DMAR's Market Trends Committee.

We exited the Great Recession ahead of the rest of the country and experienced a surge in real estate sales during the early days of COVID-19 while the rest of the country tried to find its bearings. While we work to navigate this new landscape, it's important to note that Denver remains one of the Nation's strongest housing markets.

So, what does that mean locally? Simply put, inventory is slowly growing, inching us closer to a balanced market that gives buyers and sellers equal footing. New listings increased 1.74 percent, and pending sales increased by 0.76 percent month over month. More notably, active listings at month's end increased 8.87 percent month over month to 6,858, while pending sales declined 13 91 percent and closed volume declined 16.11 percent. Activity is slowing slightly with inventory increases. The median close price dropped 1.36 percent from $590,000 to $582,000 and median days on market increased 22.22 percent to 11 days.

Buyers feel the shift and think that we are no longer in a full-price market. Median days on market increasing to 11 days may seem benign, but it also means homes are sitting on the market for 70 days or more. As a result, buyers want to negotiate on price and receive a concession for a rate buydown. Close-price-to-list-price ratio remains in the 99th percentile, showcasing buyers and sellers are coming together to make sales happen without huge negotiation swings. Pricing in this market is a science. If a home is priced correctly, or even priced under market, it may still receive multiple offers. However, if the price is slightly high then das on market climb until you find the right buver, or the right price.

Even if there were a rapid decline in interest rates, I believe we are slowly inching towards a balanced market. The months of inventory for detached homes under $1 million are sitting at a month and a half to just shy of two months, while above a million dollars, the months of inventory sits at roughly two and a half months and increases to 5.79 months of inventory with $2 million plus. The best performing price band for both detached and attached homes was $750.000 - $999,999 with an increase in sales month to month of over three percent.

For serious buyers who have their financing buttoned up, there are a number of opportunities available. I recently spoke with an agent listing a townhome who was frustrated that she's been told by five separate buyer's agents that an offer is coming only to have the buyers hold off due to rate increases. The important message is that sellers are eager for qualified buyers to make an offer. It's critical to make sure buyers understand their buying power before they start looking at properties.

As the Denver market continues to adiust, there are was to make this market work for you. FHA loan applications are on the rise, there are first-time homebuyer down payment assistance programs and assumable loans are quickly becoming an advantageous marketing incentive. The key to success in real estate has always been to buy what you can afford and then hold it for as long as you can.

We don't know how long these current market conditions will hold, but at the end of the day, it's always a good time to buy. In my opinion, having the ability to negotiate on price and terms is a better place to sit than paying 10 percent or more on a home in a competitive scenario while waiving a litany of due diligence dates.

Thought on the Current Market - Mar 2020

Well Denver, this spring sure took a turn for the...interesting. We’re under official “stay at home” orders and there is a lot of uncertainty going on right now. As with many other industries, the real estate world has changed drastically in the past few weeks, and even days.

In order to continue to operate safely, the industry has adapted A LOT...utilizing technology to meet with clients + market listings, using an abundance of caution at showings, facilitating almost the entire transaction remotely, and having no-contact inspections, appraisals and closings.

Right now, real estate has been deemed “essential” under the state’s new orders. I’m so thankful my buyers and sellers who are currently under contract will still have somewhere to move into and actually have a place to “stay home” at.

There are certainly several reasons why someone NEEDS to buy or sell at this time – maybe they’ve already bought their next home and need to sell their current one, they’ve already sold their current home and need to buy their next one, their lease is ending, or they have other specific personal circumstances. If this is the case, we can certainly make it happen.

However, in this time of limiting exposure to others it is probably not a great idea to go house hunting for fun, get your feet wet checking out homes, or arranging handfuls of showings. Buyers who are active right now should be serious – fully pre-approved and only seeing a home if they think they may really want to make an offer on it.

It is impossible to predict the future, but we are fortunate Denver has the foundation of a strong housing market. We are nowhere near having the supply to meet the demand. Showings are down, but the number of homes going under contract is near the number of new listings going on the market. We will see what the upcoming weeks bring, and of course I will keep you posted!

Check out this West + Main Homes article about buying and selling at this time.

If you have questions about your specific situation, please send me a message!