Market-wide, new listings fell slightly month-over-month by 0.76 percent, while active listings at month's end climbed slightly to 10,724 homes, which is a 56.37 percent increase year-over-year, according to the Denver Metro Association of Realtors’ Market Trends Committee.
Pending sales increased 3.74 percent month-over-month and 7.7 percent year-over-year. Closed sales fell 7.55 percent month-over-month, which I believe will go back up next month as closed sales are a lagging indicator due to a traditional 30-day closing. These quick stats indicate that a reduction in mortgage rates is moving buyers back into the market. Saying that, the median days in MLS continued to climb 31.25 percent to 21 days, a 90.91 percent increase year-over-year.
The attached market experienced some of the largest swings in data. This has become my most watched segment of the market due to higher HOA dues, along with increased taxes and insurance premiums. Some associations have adjusted their deductible to help offset costs, but those changes have in turn made lending more difficult. As a result, this segment has become more challenging to put transactions together. Active listings at month's end stayed almost unchanged, with a 0.40 percent increase month-over-month to 3,227 homes, a 70.92 percent increase year-over-year. Median days in MLS also rose year-over-year at a sharp rate of 136.36 percent to sit at 26 days. More telling is the drop in median close price month-over-month to $396,350, down from $415,000 last month and $418,000 from this time last year.
Meanwhile, the detached market experienced a 50.85 percent increase in active listings at month's end with 7,497 homes. New listings fell slightly by 0.99 percent while pending sales increased to 2,836. The median close price stayed stable at $650,500. down 0.69 percent from last month and up a mere 0.08 percent from last year. Median days in MLS climbed to 19 days.
Generally, there does not seem to be a large sense of urgency for buyers or sellers. Buyers continue to watch the homes that have come up in their searches and may even be tempted to take a look. However, they aren't placing offers on homes unless it perfectly aligns with their wish list. The DMAR Market Trends Committee has noted that transactions falling out of contract are on the rise. This may be due to cold feet from buyers, the rise in contingent offers, lending issues or bullish sellers unwilling to negotiate inspection items.
Realtors® have always been able to think outside the box and find new ways to advocate for our clients, achieving a win - win for both sides. This market is no different and offers a chance for us to learn new ways to work together.
Learn more about the market from the Denver Metro Association of Realtors.
Thank you to our partners at the Denver Metro Association of Realtors for compiling this information.
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