November 2023 showed that the holiday gift of homeownership is alive and thriving in Metro Denver.
This holiday season, buyers in the Denver region have received the gift of growing inventory. According to the statistics, active listings at the end of November increased by 6.89 percent year-over-year, reaching a total of 6,684. While closed sales experienced a slight dip of 13.98 percent, the rise in new listings by 1.04 percent showcase a dynamic market.
Despite the YOY increase, month-over-month data indicated a drop in active listings by 10.67 percent and new listings by 28.93 percent. It’s important to note that the Denver Metro Area follows a seasonal pattern, witnessing a typical decline in inventory during this time of the year. Particularly heading from October into November and December.
Sellers were also not out in the cold this season as they continued to receive gifts in the form of time and opportunity. Homes are taking longer to sell, with the median days in the MLS growing to 22 days, a substantial increase of 37.50 percent month-over-month, suggesting that this extended timeframe provided sellers with a chance to address deferred maintenance items and set realistic expectations for their home’s market journey. Additionally, 22 days on market is still considered a dramatic seller’s market, despite it feeling like the shift has favored buyers.
In the $1 million and above segment, the market dynamics in November were shaped by higher interest rates and home prices, coupled with an uncertain economic forecast. New listings saw a 42.46 percent decrease from October, reflecting a seasonality and norm associated with the usual slowdown during this time.
Interest rates, hovering around seven percent, significantly impacted loans of $1 million or more. Although many purchasers in the high-end are still opting to pay cash. November’s sales volume was down 25 percent from last year, with the close-price-to-list-price ratio dipping to 97.11 percent. Homes priced over $1 million experienced a 41.18 percent year-over-year increase in median days in the MLS, highlighting a trend where buyers are taking their time.
Despite these challenges, 2023 has proven to be a strong year for the housing segment. Compared to 2019, and removing the pandemic years, sales volume year-to-date has more than doubled, closed volume has nearly doubled, new listings are up over 66 percent, and the price per square foot has increased by over 14 percent.
Overall, the Metro Denver real estate market showcased a nuanced landscape where buyers and sellers are navigating the season’s offerings. As we embrace the holiday spirit, it’s evident that the opportunities for homeownership remain alive and thriving in the Denver Metro area.
*Updated as of December 7, 2023