Market Updates • February 4, 2024

February 2024 Denver Housing Market Update

Despite the snowy scene outside today, I’ve got some hot-off-the-press updates on the Denver housing market. If you prefer visuals, catch the full scoop in my video:

 

Not surprisingly, the market is already heating up, albeit faster than even I expected. Traditionally, January prices tends to be a bit on the chill side and set the low for the year, but not this year. January closings and December shoppers have set a different tone. For January Closings, the median residential price was $565,000 up from the $550,000 in December. The year started with a bang as buyers hit the market earlier than normal in mid December, contrary to the usual mid January kick-off.

Let’s dive into the numbers. Our focus is the 7-county Denver Metro area which includes: Denver, Douglas, Jefferson, Adams, Arapahoe, Broomfield, and Elbert counties. January’s data, influenced by late December’s shoppers, sets the tone for the upcoming month. The average price saw a slight increase, defying the typical January dip.

Key Market Indicators

  1. New Listings Took Off
    December saw ~1600 new listings, but January jumped to over 3100. Almost double the listings in just one month! This surge indicates a proactive move by sellers, willing to let go of those Golden Handcuffs.
  2. Active Listings Dwindle
    Despite the influx of new listings, active listings still decreased. This scarcity emphasizes the intense demand picking up, and that the Buyers are getting out early this year.
  3. Seller Mindset Shift
    What’s causing this demand-supply gap? Homeowners are reevaluating their stance. Many, previously reluctant to move due to low mortgage rates, are now reconsidering. With rates in the 5’s to 6’s, the prospect of maintaining a similar monthly cost is enticing.

The Shift in Market Dynamics

The shift is palpable. Despite a considerable increase in new listings, the inventory is struggling to keep up with buyer demand. This echoes the trend observed in 2021 and 2022 but with a new twist. Buyers are out in force, but we’re not in the realm of the frenzied bidding wars we experienced in previous years, not yet anyway.

Seller’s Advantage

Interestingly, January marked the fewest closings since 2011 in the Denver Metro market. This scarcity might seem surprising given the heightened market activity the last 5 years, but it highlights the lack of available properties for eager buyers.

Looking Ahead: Predictions and Strategies

As we approach spring, the market is poised to become more aggressive. While bidding situations are expected, I’m not anticipating a return to the extreme conditions of 2021 and 2022, as the buying power and affordability just aren’t there anymore. Buyers are eager, having been pent up due to various factors, but the market seems to be easily “healthy and aggressive”. At least it’s not the medieval blood bats of the past, not yet anyway.

Strategic Recommendations for Buyers and Sellers

For Buyers looking for choices and very specific homes, the time is now through June. Avoid the potential competition in March, April, and May by getting ahead in the game and making sure you are prepared when the RIGHT place comes around. However, for those not in the financial position to compete, Q3 or Q4 might be a strategic plan to sidestep intense bidding wars. With an upcoming election this fall, I expect Q4 to be awfully slow and a solid opportunity to negotiate.

For Sellers, the window is opening. March, April, and May are optimal months to list If you’re looking for top dollar and a fast sale, and I’ve got some available slots for those ready to make a move. Have a place that needs a lot of work? Investors are always looking for an opportunity in the Denver market, and I have a list of quite a few that would love to make an offer.

If you’re in the South Denver Metro area and looking to buy, sell, or do both, let’s chat. Book a consultation now at a time that works for you or call me at 720-295-9089.

As always, thanks for your time and please feel free to share this with anyone you think may find it helpful. 🙂