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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Just Listed: This Base Camp One condo features two bedrooms, two bathrooms, and is just steps from the base lodge at Granby Ranch!

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This Base Camp One condo features two bedrooms, two bathrooms, and is just steps from the base lodge at Granby Ranch!

Enjoy easy access to mountain adventures with amenities like a ski locker, bike storage, fire pit, inviting gathering spaces, secure entry, and a heated garage. HOA perks include Granby Ranch Club privileges: family ski and bike passes, rounds of golf, Fraser River fly fishing access, and wellness amenities such as an outdoor pool, hot tub, and fitness room. This condo combines comfort, convenience, and access to year-round mountain living.

Listed by Leah Bishop for West + Main Homes. Please contact Leah for current pricing + availability.

 
 
 

Have questions?
West + Main Homes
(303) 935-8787
hello@westandmain.com

Presented by:
Leah Bishop
970-531-4723
leah@leahkbishop.com


 
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Home for the Holidays: The Rise of Multi-Generational Home Buying

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The concept of multi-generational housing— homes that have adult siblings, adult children over the age of 18, parents, and/or grandparents residing with the primary home buyer — has been gaining traction over the past decade.

According to this year’s Profile of Home Buyers and Sellers, 17 percent of home purchased last year were multi-generational households, the highest proportion since NAR began recording this figure in 2013.

Whether driven by economic factors, caregiving needs, or cultural traditions, more families are choosing to live together. Our data shows that the top reasons for purchasing a multi-generational home were cost savings (36 percent), to take care of aging parents (25 percent), children over the age of 18 moving back home (21 percent), and children over the age of 18 never having left home (20 percent). Rising housing costs have made it harder for young adults to afford homes of their own, while retirees on fixed incomes may struggle to maintain independent housing; sharing a home can ease financial strain for everyone involved. By continuing to live in the home, young adults can save for a downpayment on their own home. Sixty-nine percent of all first-time home buyers used funds from their savings for the downpayment on their home. Simultaneously, with an aging population, many families are stepping in to provide care for elderly relatives.

Who Is/Are Buying Multi-Generational Home(s)?

More than half (58 percent) of 2024 multi-generational home buyers were married couples, and nearly one-fifth were single-females (19 percent. Across all racial and ethnic groups, married couples lead the way in multi-generational home buying, but there are differences across racial segments. Among Black/African American multi-generational home buyers, single females made up 36 percent of these home buyers, significantly higher than any other racial/ethnic group. Among Asian/Pacific Islander multi-generational home buyers, 12 percent were single males – higher than any other racial/ethnic group. 

There is more racial and ethnic diversity among multi-generational home buyers compared to all home buyers. Seventy-three percent of multi-generational home buyers identified as White (compared to 83 percent of all buyers), ten percent identified as Black/African American, nine percent identified as Hispanic/Latino, and eight percent identified as Asian/Pacific Islander.

Multi-generational home buyers have a median age of 57. While the majority—77%—are aged 45 and above, younger buyers are also part of the mix, with eight percent falling between 18 and 34 years old. Notably, 23 percent are aged 45 to 54, nearly 10 percentage points higher than the share among all home buyers, and 24 percent fall into the 55 to 64 age group.

The Sandwich Generation: Balancing Care for Two Generations

Some multi-generational home buyers are a part of “The Sandwich Generation.” Some multigenerational home buyers are a part of the Sandwich Generation- middle-aged adults juggling the care of both aging parents and their own children. These home buyers are facing increasing challenges as the longer lifespans and the rising financial dependency are added to their responsibilities. Multi-generational home buyers are more likely than the average buyer to have children under 18 living at home, with 37 percent reporting having at least one child under the age of 18 residing in the home. Among those who cite caring for aging parents as their primary reason for purchasing a multi-generational home, 29 percent also have children under 18 in the household. Financial pressures further compound these challenges, as 17 percent of multi-generational buyers carry student loan debt, with a median balance of $30,000.

Multi-generational living offers families financial and emotional support, stronger bonds, and shared caregiving responsibilities. However, it also requires navigating privacy, space, and interpersonal dynamics. As this trend continues to grow, it reflects on how families are adapting to modern economic and social realities while rediscovering the benefits of living together.

Whether for the holidays or year-round, multi-generational living demonstrates that home is more than just a house—it’s the people we share it with.

See more at NAR

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Everything You Need to Know About Alternative Fireplaces

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No chimney, no problem! Alternative fireplaces are hotter than ever. Learn which one could be right for your home.

A fire makes every room feel cozier, and now you can have one pretty much anywhere you want one. Fireplaces powered by alternative fuel sources, such as gas or electricity, don’t require a chimney — or a major renovation. Some are freestanding and just plug into a regular outlet. Keep reading to find out which type is right for you and start shopping!

Gas Fireplaces

Choose this option if you want the look and feel of a wood-burning fireplace without all the hassle.

The Pros:

  • Real heat-emitting flames turn on and off with a switch, remote or app.

  • Fuel doesn’t require refilling. Units connect directly to your home’s gas line.

  • No need to store and transport real logs. (Faux logs or stones should be dusted.)

The Cons:

  • You need to hire a pro to install; the cost could run from a few hundred to more than $1,000.

  • There are two main types: direct-vent (pulls air from outside) and ventless (pulls air from the room). The ventless systems are illegal in some areas, so check local laws.

Electric Fireplaces

This is the clear winner if you want to do the job yourself. Take it out of the box, plug it in, flip a switch!

The Pros:

  • The most common models are 120-volts that plug into an outlet like any other appliance.

  • Many designs let you customize the brightness of the flame and turn off the heat.

  • There are no fumes, smoke or soot.

The Cons:

  • Flames look fake, but some designs lean in with fun flame color choices (like green and purple).

  • Running it for several hours daily on high could cause an uptick in your electric bill. Occasional usage shouldn’t cost more than a dollar or two.

Bio-Ethanol and Gel Fireplaces

These are typically freestanding or wall-mounted. The fuels burn cleaner than wood.

The Pros:

  • Freestanding models are easy to set up and can be placed almost anywhere, even in the middle of a room.

  • They offer the combo of a real smokeless flame and sleek modern design.

  • Venting is not required.

The Cons:

  • You have to manually light and extinguish.

  • Fuel refills are more expensive than natural gas. You’ll need a liter of bio-ethanol or a can of gel for every two to three hours.

  • They don’t provide much heat.

Wood Pellet Stoves

Consider this if you love the look of old-school wood-burning stoves but want to set it and forget it.

The Pros:

  • Wood pellets burn cleaner and more efficiently than logs.

  • Most have easy electric automatic ignition.

  • They give off strong heat that can warm a room nicely. Some have thermostats to set the temperature.

The Cons:

  • A fireplace pro must install a proper vent system, which can cost thousands.

  • You’ll need to refill pellets (a 40-lb bag lasts 8 to 12 hours).

  • Most run on electricity, so it goes out if you lose power.

Read more at HGTV

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This factor can get your mortgage application denied — even if you’re a high earner

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If you need to get a mortgage to buy a house, make sure your finances are in order — especially your debt to income ratio.

Your debt-to-income ratio is all your money debt payments divided by your gross monthly income. It’s the “number one way” lenders measure your ability to manage the monthly loan repayments, per the Consumer Financial Protection Bureau.

The debt-to-income ratio was the most common reason for a denied mortgage application, at 40%, according to the 2024 Profile of Homebuyers and Sellers report by the National Association of Realtors. 

Other factors that affected homebuyers in the approval process were a low credit score (23%), unverifiable income (23%) and not enough money in reserves (12%), the report found.

The NAR polled 5,390 buyers who purchased a primary residence between July 2023 and June 2024 and found that 26% of homebuyers paid all-cash — a new high.

Lenders look for a ‘healthy’ debt-to-income ratio

Repeat buyers who gained record home equity in recent years drove that trend, according to the NAR.

But for those who need to borrow in order to buy, lenders and institutions look at your debt-to-income ratio to see if you may struggle to add a mortgage payment on top of other debt obligations.

“The higher your debt-to-income ratio is, the less chance they’re going to feel comfortable lending to you,” said Clifford Cornell, a certified financial planner and associate financial advisor at Bone Fide Wealth in New York City.

It’s a factor that affects home applicants of all income levels, said Shweta Lawande, a certified financial planner and lead advisor at Francis Financial in New York City. 

“If you’re a high earner, you might not experience an issue saving towards a down payment, but that doesn’t mean you have a healthy debt to income ratio,” she said. 

Here’s what you need to know about your debt-to-income ratio.

How to calculate your debt-to-income ratio

If you’re looking to apply for a mortgage, the first step is to know what your current DTI ratio is, said Lawande.

Take your total required monthly debt payments, like your monthly student loan or car loan payment. Divide that sum by your gross monthly income, she said. Multiply the result by 100 and you have your DTI expressed as a percentage.

A DTI ratio of 35% or less is typically considered as “good,” according to LendingTree.

But sometimes lenders can be flexible and approve applicants who have a debt-to-income ratio of 45% or higher, Brian Nevins, a sales manager at Bay Equity, a Redfin-owned mortgage lender, recently told CNBC.

A way to figure out your housing budget is the so-called 28/36 rule. That guideline holds that you should not spend more than 28% of your gross monthly income on housing expenses and no more than 36% of that total on all debts.

For example: If someone earns a gross monthly income of $6,000 and has $500 in monthly debt payments, they could afford a $1,660 a month mortgage payment if they follow the 36% rule. If the lender accepts up to 50% DTI, the borrower may be able to take up a $2,500 monthly mortgage payment.

The ‘better’ debt repayment strategy

You can improve your debt-to-income ratio by either shrinking your existing debt or growing your income.

If you have existing debt, there are two ways you can work to pay it off, experts say: the so-called “snowball method” and the “avalanche method.”

The snowball method is about paying off the smallest debt balances first no matter what the interest cost is, which can feel less overwhelming, said Shaun Williams, private wealth advisor and partner at Paragon Capital Management in Denver, the No. 38 firm on CNBC’s 2024 Financial Advisor 100 List.

“One is what’s best on a spreadsheet, and the other one is what makes someone feel best from a behavioral finance standpoint,” Williams said.

Yet, “the avalanche is better because the true cost of debt is your interest rate,” he said, as you’re more likely to pay down the debt faster.

Let’s say you have student loans with a 6% interest rate versus an existing credit card balance accruing a 20% interest rate. If you’re sitting with credit card debt, consider tackling that balance first, Cornell said.

“Whichever one’s costing you the most to borrow is the one that you want to pay down as quickly as possible,” he said.

If you’ve already done what you could to either consolidate or eliminate existing debt, focus on increasing your income and avoid other large purchases that would require financing, Lawande said.

“The goal is to just preserve the cash flow as much as possible,” she said.

Read more at CNBC

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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.

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