The spring market is here and is outperforming expectations, according to the Denver Metro Association of Realtors Market Trends Committee.
Interest rates began their steep upward climb last May, with the real estate market feeling the slowdown acutely by fall. Heading into the New Year, expectations were conservative with the prediction that the spring selling season would be calmer than in years past with slower appreciation and longer days on market. However, low inventory coupled with continued buyer demand resulted in a stronger start than predicted for the Mile High City.
Sellers who jumped into the market are reaping the rewards with the return of multiple offers and more seller-friendly terms. New listings were down 15.61 percent to 5,093 year-over-year, which is 942 fewer properties, lowering the number of available options for buyers to view and place offers. For perspective, inventory year-to-date is lower with 8,833 closed sales in March 2023 compared to 9,590 in 2014. Interestingly enough, new listings in both the attached and detached segments rose over 47 percent from February showcasing more inventory is hitting the market. Pending homes were also down year-over-year; however, they rose 22.32 percent month-over-month, which is an increase of 3.21 percent more than last year. Sellers are advised to continue to price their properties thoughtfully to elicit strong offers as properties are still falling out of contract due to inspection items or issues arising from buyer financing.
Buyers are not down and out in this market. They know the game and are coming prepared. The median sales price was down 6.15 percent from $602,000 last March to $565,000, and median days in MLS increased from four days last year to 10 days for both the attached and detached segments of the market. Even though bidding wars have subsided from last spring, they are on the rise again for turnkey homes that are new to the market. Buyers may not have as many homes to view, but they do have the option of balancing the pros and cons of jumping into a competitive situation. Or, they can take a different approach by targeting properties that are either overpriced, have been sitting on the market or have fallen out of contract by negotiating more buyer-friendly terms as active listings at month end were up 103.33 percent year-over-year. Either way, buyers understand that prices are down and days in MLS are up. They are doing their research and crafting thoughtful offers. They are also keenly aware of Denver's seasonality with the knowledge that more homes will hit the market month-over-month as we head into summer.
While the numbers don't lie, Realtors® across the Denver Metro Area shared how the activity feels significantly more hectic than in past years, even with spring break lowering showing activity. Time will tell how the rest of the year shapes up, but based on the current activity, April's numbers are forecasted to be strong.
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.
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.
