market trends

Greater Denver Area Real Estate Market Report from November 2024

 
 

November brought a unique set of challenges, according to the Denver Metro Association of Realtors’ Market Trends Committee.

The first two weeks included the release of the employment data report, a presidential election, the Federal Reserve meeting and the consumer price index report. Each of these events introduced market volatility. While many consumers may not track these data points as closely as we do, they can still feel the uncertainty and fluctuations in consumer confidence.

With challenges come opportunities. Buyers in this current end-of-year market are finding gifts on a level rarely offered. Of the homes sold in November, about 50 percent had at least one price reduction before going under contract, and roughly 60 percent of the sellers provided concessions to buyers, many in the form of interest rate buydowns or repair credits.

November also saw a month-over-month decline of 16.54 percent in properties that closed or went pending, which declined by 10.54 percent. This is not surprising given the month's complexity and the increase in mortgage rates, which returned to the seven percent range.

Heading into the holiday season, we have seen a decrease in the number of new listings entering the market, which is typical this time of year. A decrease of 40.38 percent for attached homes and 41.90 percent for detached month-over-month allowed buyers to absorb some of the inventory, resulting in a 14.90 percent decrease in the active listings at month's end compared to October. Although inventory declined month-over-month, November saw an increase of 57.08 percent in attached homes and 32.01 percent in detached homes year-over-year. This presents opportunities for buyers to take advantage of higher inventory and reduced competition during the winter months.

Although inventory remains higher than in 2023, the median sale price for detached homes increased by 1.90 percent compared to November 2023. Attached homes saw a slight decline of 1.20 percent over the same period.

Through November 2024, 54,006 new listings entered the market, an increase of 12.84 percent from 2023. However, the total number of new listings still lags compared to recent years; through November 2020, 66,947 new listings had entered the market. The total number of sold properties in 2024 reached 39,153, a slight 0.31 percent from 2023 but a significant 32.83 percent drop compared to year-to-date 2020.

By the end of November, active inventory totaled 9,310 properties, with 3,022 properties closing during the month. These figures closely resemble November 2013, when 9,352 properties were on the market and 3,661 properties closed. Looking back, many buyers would describe 2013 as a favorable market, even though it came with its own challenges, such as a 7.4 percent unemployment rate and the lingering effects of the Great Recession.

While today's market challenges differ, opportunities remain for those who seek them. Whether buying or selling, every client faces unique variables, and it's our role as advisors to help them uncover the opportunities in each market and maintain perspective.

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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Greater Denver Area Real Estate Market Report from October 2024

 
 

The October market data showcases a tale of two markets. according to the Denver Metro Association of Realtors’ Market Trends Committee.

In the first half of the month, buyers were lured back into the market by a brief break in interest rates. Leading up to the highly anticipated Fed rate cut, mortgage rates hit a 19-month low in September at 6.1 percent bolstering sales into October. How-ever, with stronger-than-expected economic data throughout October, rates continued their upward climb, crossing the seven percent threshold by the end of the month. The swift rise in rates created a "pause" effect, amplifying the anticipated election-related paralysis among buyers in the latter half of the month. As such, the following data reflects a more optimistic picture of where the market currently stands.

Closed home sales rose 2.35 percent to 3,443, likely due to the dip in rates within the month of Septem-ber, as homes that went into pending status the prior month closed in October. Sales volume followed with a 7.4 percent increase while pending sales rose slightly by 1.07 percent. This uptick in activity brought months of inventory down from 3.6 to 3.18 months market-wide; however, median days in MLS continued to climb from 25 to 26 days.

Active listings decreased slightly by 1.57 percent due to the increase in pending and closed sales, as buyers absorbed some of the standing inventory. However, active listings are still 46.22 percent higher compared to last year, highlighting that there are simply more options, and it is taking longer to sell a home today. Reflecting on election-related hesitation, new listings decreased by 7.16 percent as sellers delay listing until after the election cycle.

Once election results are finalized, buyers and sellers are likely to refocus on the real estate market. Reflecting on historical data from the past three election cycles, DMAR Market Trends Committee member Michelle Schwinghammer noted, "In the 11-county Denver metro area over the last three election cy-cles, we've seen more month-to-month home price volatility leading up to an election, followed by increased price stability and a return to traditional seasonal patterns post-election. Once results are in, buyers and sellers tend to shift back to business as usual."

Anecdotally, many Committee members reported an increase in sellers preparing to sell their homes in the new year. If the Federal Reserve does lower rates this month and again in December, we may be set on a path for a strong 2025 as conditions normalize and home prices stabilize post-election.

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.

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Greater Denver Area Real Estate Market Report from September 2024

 
 

Buyers and sellers who attempt to time the market perfectly may find the balancing act as frustrating as timing a trip to the mountains to see the peak of the aspens changing color this fall, according to the Denver Metro Association of Realtors’ Market Trends Committee.

While the Federal Reserve Bank lowered rates by 0.50 basis points- a larger cut than many expected - buyer activity remained sluggish. The median close price dropped slightly by 2.34 percent to $576,171, down from $590,000 in August while median days in the MLS increased 19.05 percent to 25 days from 21 days. New listings stayed relatively unchanged with 5,053 while pending sales increased by 3.64 percent to 3,761. Active listings at month end grew slightly by 3.65 percent month-over-month, a staggering 45.69 percent increase year-over-year.

The most notable stat that we want to highlight is how months of inventory have steadily climbed since last June when we started tracking this data point market-wide. For reference, our June 2023 report showcased that the month of May had 1.25 months of inventory. In September, months of inventory increased to 3.6 months. This represents the first time months of inventory have crossed the three-month mark, meaning it takes an average of 3.6 months to find a buyer, which traditionally has been categorized as a balanced market. This is a far cry from a pandemic-fueled market which had less than one month of inventory.

Homes are simply spending more time on the market and experiencing more price reductions before finding a buyer. This is a direct result of buyer demand waning due to higher interest rates and, to some degree, anticipation for the upcoming Presidential election. Many buyers who I am working with are simply waiting for truly the perfect fit, before submitting an offer. They aren't willing to make compromises on a home they have to pay more for due to higher interest rates. When they do find the right home, even if a home is new to the market, they are eager to negotiate.

Sellers need to understand that it's simply taking longer for homes to sell. I do expect the months of inventory to continue to climb as we move closer to the election and the upcoming holiday season. Saying that, many sellers have indicated a desire to hold off listing their homes until the spring to try timing their sales a bit more strategically.

This is historically the Denver metro area's height of the selling season and the time of year when sellers experience the highest sales price all year.

If buyers are waiting for the end of the election cycle and the holidays to wrap up, they may be kicking themselves for not striking while the iron is hot. Historically, sellers have reaped the rewards as home prices tend to increase after an election cycle.

While we hope you have been able to time your trip to the mountains perfectly to see the golden glow of the aspens, the Denver real estate market continues to be an ever-changing landscape post-pandemic.

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.

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Greater Denver Area Real Estate Market Report from August 2024

 
 

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.

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.

Search Homes in Colorado

Greater Denver Area Real Estate Market Report from July 2024

 
 

July is a time of year when we traditionally see the Denver real estate market take a bit of a break, says the Denver Metro Association of Realtors’ Market Trends Committee.

However, this year, the market has been as unpredictable this year as our weather. The adage in Denver is that if you don't like the weather, wait 15 minutes. That advice rings true for many sellers, as patience might be the key to finding the right buyer. Amazing properties can languish on the market, while unremarkable homes sell immediately leaving many to question what is happening.

I've recently heard Realtors® express we are shifting into a buyer's market. This is hard to define as the pandemic turned some of our steadfast rules of what constitutes a seller's market versus a buyer's market on their head. Statistics indicate that we are moving towards a balanced market with 2.86 months of inventory, a number which has continued to grow steadily throughout the year. However, some price ranges, and areas of town, have simply become a buyer's market due to the number of available options.

The market experienced a slowdown with an 11.58 percent decrease in new listings month over month, although new listings were up 7.58 percent year over year. This means that fewer sellers listed their homes in July, while the larger trend continues to showcase that not all homeowners are married to their historically low interest rates. Instead, they may be some of the savviest consumers understanding that a potential rate cut this fall could increase buyer demand.

This increased competition may take us back to a landscape where home prices rise as multiple buyers bid on the same homes. Buying now allows for a thoughtful search with room for negotiation and a refinance down the road.

Meanwhile, active listings increased 3.62 percent month over month and an astonishing 68.03 percent year over year to 10,584. In fact, year to date, active listings are up anywhere between 44 percent to 161 percent when compared to the three years proceeding. Pending sales stayed steady month over month with a slight 0.18 percent decrease to 3,896, while closed sales dropped to 5.19 percent to 3,708.
Buyers, aware of the rise in inventory, have been negotiating as close-price-to-list-price ratio is the lowest it has been year to date since July 2020. Median close price dipped slightly month over month from $601,000 to $600,000, but prices continue to rise compared to a median close price last July of $590,000. Meanwhile, median days in the MLS continue to increase steadily, with a 15.38 percent increase month over month to 15 days, and a 66.67 percent increase year over year.

As the summer selling season winds down throughout August, the change in our marketplace may be the perfect timing as we find ourselves transacting business in a new way. Buyers have the ability to negotiate, which in some ways is like shopping for the best deal during the Nordstrom Anniversary Sale. It provides the opportune time to find a new home before prices go back up.

Keep reading for a breakdown on properties sold between $500,000 and $749,999 from West + Main Homes agent Michelle Schwinghammer!

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.

Search Homes in Colorado

 
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