• Thu. Feb 29th, 2024

    Denver Housing Market Sees Increased Listings and Buyer Enthusiasm

    ByJames Forsyth

    Feb 6, 2024
    Denver Housing Market Sees Increased Listings and Buyer Enthusiasm

    In a positive turn for the Denver housing market, sellers have emerged from their slumber and there has been an influx of new listings. This surge in listings is setting the stage for a larger number of home closings in the coming months, according to the Denver Metro Association of Realtors.

    The number of new listings in January skyrocketed by 90% compared to December, reaching a total of 3,280. Additionally, new listings increased by 14.7% compared to the previous year. While such significant increases between December and January are not uncommon, this surge is indicative of a rebound in the market.

    Buyers closed on 2,051 homes and condos in January, which represents a decrease of 25% compared to December and a 6.3% decline from the previous year. However, it is important to note that the time it takes for a home to go under contract and close can take a month or more. Therefore, the decrease in closings primarily reflects market conditions in November and December, rather than the current enthusiasm among buyers.

    Pending home sales, a key indicator of future activity, rose by an impressive 42.6% month-over-month and increased by 6.5% compared to the previous year. This surge in pending sales suggests sustained demand in the Denver housing market.

    The median price of a single-family home climbed to $625,000 in January, a 2.5% increase from December and a 4.2% increase compared to December 2023. However, the median price of townhomes and condos experienced a decline of 5.9% on a monthly basis, reaching $395,000. This represents a small decrease of 0.13% compared to the previous year.

    While the inventory of single-family listings dropped by 4.8% in January compared to the previous month, it increased by 15.3% compared to the previous year. Conversely, the inventory of condo and townhome listings rose by 4.7% in January and saw a significant annual increase of 25%.

    As interest rates remain a crucial factor for the market, the spring selling season is predicted to be strong this year. The chairwoman of the DMAR Market Trends Committee, Libby Levinson-Katz, anticipates heightened demand and more competitive scenarios if interest rates fall below 5% for a 30-year mortgage.

    With buyers eagerly awaiting lower interest rates, timing the market could result in higher prices as bidding wars return. It is important for buyers to have realistic expectations and be prepared for competition in the market.

    The high-end market in Denver has seen a surge in listings priced at $1 million or above, with a 172.6% monthly increase and a nearly 40% annual increase. This increase in high-end listings has led to a rise in pending home sales, up 46% from the previous month and 23.3% from the previous year.

    Although high-end listings took a median of 55 days to go under contract in January, compared to 33 days in December, it is expected that this number will decrease as the market continues to heat up.

    In summary, the Denver housing market is experiencing a positive shift with increased seller activity and buyer enthusiasm. The surge in new listings and pending home sales point towards a strong spring selling season, while the impact of interest rates remains a key factor to monitor in the coming months.

    Frequently Asked Questions about the Denver Housing Market

    1. What is the current state of the Denver housing market?
    The Denver housing market is experiencing a positive shift, with an influx of new listings and increased buyer enthusiasm.

    2. How much did new listings increase in January?
    New listings in January increased by 90% compared to December, reaching a total of 3,280. They also increased by 14.7% compared to the previous year.

    3. Did home closings decrease or increase in January?
    Home closings in January decreased by 25% compared to December and declined by 6.3% from the previous year. However, this primarily reflects market conditions in November and December.

    4. What do pending home sales suggest about the market?
    Pending home sales, a key indicator of future activity, rose by 42.6% month-over-month and increased by 6.5% compared to the previous year. This indicates sustained demand in the Denver housing market.

    5. How did housing prices change in January?
    The median price of a single-family home climbed to $625,000 in January, a 2.5% increase from December and a 4.2% increase compared to December 2023. However, the median price of townhomes and condos decreased by 5.9% on a monthly basis.

    6. Did the inventory of listings increase or decrease?
    The inventory of single-family listings dropped by 4.8% in January compared to the previous month but increased by 15.3% compared to the previous year. On the other hand, the inventory of condo and townhome listings increased by 4.7% in January and had a significant annual increase of 25%.

    7. How do interest rates affect the market?
    Interest rates are a crucial factor in the market. If interest rates fall below 5% for a 30-year mortgage, it is predicted that there will be heightened demand and more competitive scenarios for buyers.

    8. What is happening in the high-end market?
    The high-end market in Denver has seen a surge in listings priced at $1 million or above, with a 172.6% monthly increase and a nearly 40% annual increase. This has led to a rise in pending home sales.

    9. How long does it take for high-end listings to go under contract?
    In January, high-end listings took a median of 55 days to go under contract, compared to 33 days in December. However, it is expected that this number will decrease as the market continues to heat up.

    10. What can buyers expect in the market?
    Buyers should have realistic expectations and be prepared for competition, as bidding wars may return. Timing the market could result in higher prices as buyers await lower interest rates.

    Key Terms and Definitions:
    – New listings: Refers to the number of homes or properties that have been listed for sale on the market for the first time.
    – Pending home sales: Refers to properties that are under contract but have not yet closed. They indicate potential future home closings.
    – Median price: The middle price point of all homes sold in a particular time period. It represents the value at which half of the homes sold for a higher price and half sold for a lower price.
    – Inventory: Refers to the number of available homes or properties for sale in the market at a given time.
    – Interest rates: The cost of borrowing money for a mortgage. Lower interest rates usually indicate more favorable conditions for buyers.

    Suggested Related Links:
    Denver Metro Association of Realtors
    Denver Post Real Estate
    Bankrate: Denver Mortgage Rates