February brings a fresh start, a sense of clarity and focus heading into the spring market - buyers and sellers both gained momentum in February as the weather warmed and the sun appeared between weekend snowstorms; multiple offers have even returned for some listings, according to the Denver Metro Association of Realtors Market Trend Committee.
Seller activity jumped in February, increasing new listings month-over-month by 11.17 percent and up 13.81 percent year-over-year. An increase in inventory is typical this time of year as sellers enter the market after pulling back during the winter months.
New listings entering the market have been low over the past couple of years; homeowners are locked into 30-year fixed-rate mortgages in the three percent range or lower and have difficulty justifying a purchase that increases costs. As time has gone on, the conversation has evolved from when rates will decline to navigating a market with high interest rates for the foreseeable future. As time passes, our lives evolve and the low interest rate carries less weight when considering staying in a home that no longer meets our needs.
This early seller activity added inventory that outpaced buyer demand for both attached and detached properties. We had 4,828 new listings enter the market in February, and 3,516 listings went pending. The attached and detached markets both saw a month-over-month increase in the number of pending homes in February, 19.92 percent and 23.27 percent, respectively.
Pending homes also increased year-over-year, 2.48 percent for attached and 23.27 percent for detached homes. The increased activity for attached homes is a good sign after the market segment lagged in 2024 due to higher costs, such as increased HOA dues and insurance.
Fewer properties sold in February than last year, a decrease of 17.29 percent combined attached and detached, and total sales volume was also down 14.04 percent. The number of total homes sold is down year-to-date by 7.05 percent, and sales volume is down 3.27 percent. Home values are holding steady despite the balance of inventory and buyer demand. The median sale price for detached homes was up 2.63 percent and attached up 2.54 percent year-to-date.
Homes are selling in a shorter amount of time in the first part of the year compared to the 4th quarter of 2024. Median days in the MLS were 27 days for detached homes, down 37.21 percent month-over-month compared to 24 days in February 2024.
The median days in the MLS for attached homes were down 12.50 percent month-over-month; however, they were up from 21 days in February 2024 to 42 days.
The market as a whole for detached homes still represents a seller's market with 2.86 months of inventory, and the attached market is in the range of a balanced market with 4.76 MOl.
Inventory and mortgage interest rates are the two variables we continue to watch closely. Rates have fluctuated since the first of the year, but a general downward trend has been noticed. Still, rates above 6.5 percent mean it is a significant part of the calculation for buyers. Sellers will continue to participate in the market, adding options for buyers. With higher inventory, the basics always work; homes that are priced well, updated and well-maintained will appeal the most to buyers and sell quickly.
Homes in less desirable condition or priced too high will take longer to sell and require price reductions to hit their target mar-ket. The balance of seller participation and buyer demand will hinge on the economic environment and consumer confidence.
Learn more about the market from the Denver Metro Association of Realtors.
Keep reading for an analysis of properties over $1m by West + Main Homes Agent, Michelle Schwinghammer.
Thank you to our partners at the Denver Metro Association of Realtors for compiling this information.
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If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.
