Denver Metro Area Ranks as the Hottest Housing Market in the Country for a Second Year in a Row
According to a recent report by U.S. News & World Report, Denver has regained its position as the hottest housing market in the United States for housing. The report highlights Denver's strong performance in various housing market indicators, including home price appreciation, low inventory levels, and high demand. Factors contributing to Denver's resurgence as a top housing market include its robust economy, favorable climate, and desirable quality of life. Additionally, the influx of millennials and remote workers seeking affordability and outdoor recreation opportunities has further fueled demand for housing in the Denver area. It's clear that opportunity abounds for both buyers and sellers alike. The report also notes that the Denver Metro area "retains a mix of strengths including low unemployment, few mortgage delinquencies, low rental vacancy rates for investors and a positive ratio of building permits to job growth.” Despite concerns about rising home prices and affordability challenges, Denver's housing market continues to attract buyers and investors, solidifying its status as one of the nation's most dynamic real estate markets.
Rising Temperatures, Rising Inventory, and Opportunities Abound
As we welcome rising temperatures, buyers in the Denver market continue to welcome rising inventory. Having options to choose from is a great reprieve from high interest rates paired with high home prices. Active listings increased 19.51 percent month-over-month and 51.30 percent year-over-year to 6,990 listings! While this is a significant increase, perspective is important – average active listings for April are 14,048 (1985-2023). Record-high April was 2006 with 29,045 listings and the record-low was set in 2021 with 2,594 listings. Still, the historical average increase in active listings from March to April is 10.32 percent, so an increase of 19.51 percent from this March to April is certainly a healthy increase.
New listings also saw a healthy uptick, rising by 21.22 percent month-over-month and 25.42 percent year-over-year, totaling 5,980 listings. Pending sales experienced a modest increase of 8.32 percent month-over-month and 5.53 percent year-over-year, with 4,468 properties pending. However, the most noteworthy metric, closed sales, saw a marginal uptick of 1.66 percent month-over-month but a 4.79 percent decline year-over-year. This suggests a slower absorption rate of inventory compared to previous periods.
As inventory expanded, buyers seized the opportunity, resulting in a 27.27 percent reduction in median days on market to a mere eight days. Median prices edged up by 1.27 percent to $602,550, while the average price reached a new record of $727,700!
Info For Sellers:
Inventory is expected to continue climbing through May, emphasizing the importance of conservative pricing. Move-in ready homes priced correctly are selling notably faster and attracting multiple offers, while homes that are not turnkey are struggling to find buyers.
Buyers will likely continue to gravitate towards properties priced at fair market value, requiring minimal additional work. Now is not the time to overprice or test the market; rather, it's about aligning prices with realistic expectations to facilitate successful transactions.
Info For Buyers:
The surge in inventory comes as a much-needed respite for buyers contending with historically low supply levels. This uptick is a pleasant surprise, considering many sellers have been hesitant to list their homes, opting instead to hold onto their properties due to the allure of low two to five percent interest rates. Despite financial constraints, determined buyers have injected optimism into the Denver market by swiftly securing desirable properties. To counter the impact of high interest rates, temporary buydowns have emerged as the prevailing strategy.
Ready to navigate the dynamic Denver real estate market with confidence? Whether you’re a buyer or seller (or both), now's the time to partner with a seasoned real estate agent! If the timing is right for your unique situation, don't let market uncertainties hold you back—act today and enlist the expertise of a trusted real estate professional to guide you through every step of your home selling or homebuying journey!
* We use reasonable efforts to include accurate and up-to-date information. The real estate market changes often. We make no guarantees of future real estate performance and assume no liability for any errors of omission in the content.
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