Colorado Real Estate News

Denver Market Trends

As the Denver real estate market gears up for the spring selling season, a surge in interest rates has prompted savvy sellers to capitalize on the growing impatience of potential buyers. The month of February witnessed a notable 29.12 percent month-over-month increase in new listings, coupled with a substantial 22.63 percent surge year-over-year. This influx of fresh properties has significantly boosted active listings, reaching 5,511 homes—a 45.87 percent gain compared to the previous year.

In response to the expanding inventory, discerning buyers are taking a more measured approach. Pending sales increased by 12.70 percent month-over-month, totaling 3,514, indicating that buyers are carefully evaluating their options and ensuring that the chosen property aligns with their needs. Successful sellers in this competitive market have dedicated time to ensure their homes are in prime condition for showings, resulting in multiple offers and maximized profits for those who executed their plans effectively.

Buyers are adopting diverse strategies in this evolving landscape. Some are navigating multiple offers on their dream homes, while others are expanding their search parameters to find hidden gems in the market. Buyers are increasingly aware of the growing inventory, giving them negotiating power on both price and terms, including inspections.

One noteworthy shift in buyer strategy involves considering home insurance availability, a concern that has become prominent not just in Denver but across the country. Prospective buyers are now factoring in home insurance considerations before submitting an offer, reaching out to insurance providers to ensure coverage in their desired areas, and obtaining Comprehensive Loss Underwriting Exchange (CLUE) Reports. This proactive approach allows buyers to identify potential hurdles, such as insurance providers declining coverage, which could otherwise disrupt a transaction.

Despite the challenges, the spring season in Denver is heating up. Prepared sellers can minimize the need for a second round of negotiations during inspections, while strategic buyers enter the market with a clear understanding of their preferences and available options.

In the high-end real estate segment—properties priced at $2 million or more—the market has experienced a significant uptick in new listings. Sellers, no longer waiting for spring gardens to bloom, listed 689 new homes in February, marking the largest month-over-month increase in inventory for this segment. Attached homes priced at $2 million and above saw a staggering 96.77 percent increase, while detached homes rose by 58.99 percent.

This surge in new listings has created a surplus of inventory, particularly in the attached market where condos and townhomes priced between $1.5 million and $1.99 million have 9.25 months of available inventory. Similarly, attached homes over $2 million face 7.33 months of inventory, establishing this segment as a favorable buyer’s market. In contrast, detached homes remain more competitive, especially in the $1 million to $1.499 million price range, boasting only 2.63 months of available inventory. At higher price points, buyers hold an advantage, with the $2 million plus segment having 6.38 months of inventory in February.

The early rush in the market signals sellers’ pent-up desires to capitalize on the current conditions, despite interest rates remaining above six percent. Tired of waiting for the perfect conditions, sellers have decided to jump back into the market, contributing to the notable surge in new listings and making the Denver real estate market an exciting space for both buyers and sellers.

*Updated as of March 5, 2024