Colorado Real Estate News

Denver Market Trends

In the heart of winter, Denver’s real estate market is warming up as buyers shed the chill of uncertainty and embrace the increasing choices available to them. The Denver Metro Association of Realtors® (DMAR) recently unveiled its January Denver Metro Real Estate Market Trends Report, offering valuable insights into the evolving market this year.

As the curtain rose on 2024, the market witnessed a surge in new listings, marking a 14.73 percent increase year-over-year, with detached properties leading the charge at 17.94 percent. This boost in inventory has granted buyers more options, leading to a 6.5 percent increase in pending home sales.

However, closed sales experienced a 6.26 percent lag, which can be attributed to a reporting delay as these numbers reflect homes that went under contract in December. Single-family homes saw a robust 11.95 percent year-over-year increase in pending sales, with the median close price reaching $625,000. This contrasts with the previous year, characterized by full-price offers with substantial concessions.

In the attached properties segment, pending sales declined by 6.61 percent year-over-year, suggesting a slightly slower pace in this category. Despite a 13.70 percent decrease in closed sales, the median close price remained steady at $395,000. The extended median days in MLS from 28 to 34 days year-over-year hint at a measured approach in this sector.

The spring selling season will likely be strong this year due to pent-up demand and more favorable lending terms. While it’s not a consistent prediction, if interest rates decline below five percent, we may see tighter inventory and more competitive scenarios once again. Many buyers are waiting on the fence for interest rates to continue their downward descent. However, trying to time the market for lower interest rates before the market heats up may result in buyers paying more in the long term if they find themselves in a bidding war. The generally anticipated date for any significant policy change on the Fed Funds rate is June 2024. In the meantime, a 2/1 loan buydown is an excellent vehicle to get into a home now with an initial rate that’s lower than current prime.

Turning our attention to the luxury real estate sector, the report highlighted a substantial increase in new listings for homes priced at $1 million and above. With a remarkable uptick of 172.61 percent over the previous month and 39.87 percent over the prior January, the Luxury Market is experiencing heightened activity.

Buyers in this segment are equally enthusiastic, as pending homes surged by 46.05 percent compared to the previous month and 23.33 percent compared to the previous January. However, the market is also witnessing the clearing of older inventory from late 2023, leading to a 26.33 percent decline in closed homes priced at $1 million and above from December.

We predict that competition between buyers is picking up and will continue to do so in the months ahead as we enter our busier time of year in Denver Metro. As we enter the February season of love the real estate market requires proper expectations and the right mindset. With competition on the rise and the market resembling a dating scene, finding the perfect match in a home might involve some challenges. Yet, when you find the one meant to be, it all works out. 

*Updated as of February 5, 2024