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January 2024 | Denver Metro Market Stats

"Last year, the Denver real estate market was challenging. We dealt with a lack of inventory and interest rates that seemed to go up daily. Despite these issues, buyers and sellers found a way to come together in a stabilizing market. Sellers said goodbye to multiple offers received in a weekend, and buyers were finally able to negotiate. As mortgage rates continue to decline, we all want to know what the Denver real estate market has in store this year.
 
If rates continue to decline, I expect to see more buyers enter the marketplace. There has been significant pent-up demand from both buyers and sellers over the last 2 years who have been interest rate adverse. If demand increases, this will ultimately pro­vide some pressure on home prices. While I do not think we will see the same upward pressure on prices that we saw a few years ago, prices will continue to rise. If demand spikes, inventory will grow throughout the year as sellers find comfort in making a move with more reasonable financing options. Additionally, I expect the selling season to start earlier this year. With pent-up demand, more favorable lending terms, and warmer temperatures than last year, there is nothing stopping buyers from getting out there."
 
Libby Levinson-Katz
Chair of the DMAR Market Trends Committee | Denver REALTOR®
  • LUXURY MARKET ($1,000,000+): "The new year lets us look back on the previous year with certainty about what we experienced and how the market responded, al­lowing us to adjust plans and strategies for the market ahead. 2023 saw buyers reluctantly accept higher interest rates and sellers holding back with the security of their 30-year fixed rates in the three percent range. Supply and demand stayed reasonably bal­anced, keeping the market steady. The market of homes $1,000,000 and higher functions slightly differently than the market as a whole. Buyers in this segment are less impacted by interest rates with higher down payments and cash purchases. However, we did see a boost in activity at this price point in December. A decrease in interest rates, strong end-of-year investment returns and a dovish narrative from the Federal Re­serve helped to case uncertainty." Amanda Snitker, DMAR Market Trends Committee Member & Denver REALTOR®
 
  • SIGNATURE MARKET ($750,000 - $999,999): "The numbers presented a chilly snapshot of Denver's $750,000 to $999,999 real estate market for December 2023. Only the highly motivated tend to take action in December. New listings experienced an anticipated drop of 41.65 percent, creating an atmosphere of scarcity. Pending sales followed suit, with a dip of 10.54 percent, indicating cautious buyers. Closed transactions faced a notable setback, down by 21.87 percent, culminating in a challenging year-end. The sales volume echoed this decline, dropping by 22.46 percent. However, amidst these challenges, there's a silver lining - we're in a better position than this time last year, with the price per square foot showing a positive increase of 1.87 percent. Days in MLS displayed an expected uptick, with the average rising by 31.71 percent, suggesting a prolonged contemplation period for buyers. Despite the market's cool reception, the close-price-to-list-price ratio remained stable, offering a sense of resilience." Keri Duffy, DMAR Market Trends Committee Member & Denver REALTOR®.
 
  • PREMIER MARKET ($500,000 - $749,999) "It's a new year, so a few predictions are in order. This market segment is heavily influenced by interest rates, so the big wildcard for 2024 will be how low rates go, when they bottom and whether they have already done so. For sellers, most will no longer expect a free-for-all buyer response. Most will head into the new year much more reasonably, pricing more accurately and making repairs before listing (or before closing). Still, many will underestimate the marketing effort, resources, preparation, and patience it will take to attract sufficient qualified buyers to fetch the price, conditions, and selling experience they want and expect. For buyers, a few smart shoppers will take advantage of opportunities in January and February; however the majority will wait to act until spring when inventory increases, hoping that rates drop even further. If and when that happens, buyers will need to act fast while being prepared to extend seller incentives to make their offer stand out." Michelle Schwinghammer, DMAR Market Trends Committee Member, and Denver REALTOR®.
*Remarks from Pages 15-16 of the January 2024 Market Trends Report from DMAR
 

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