Denver Real Estate “Springs” into Action: Blossoming Stats Signal Market Momentum

by | Apr 8, 2024 | Blog, Denver Real Estate Market | 0 comments

The Denver real estate arena dances into spring with vigor, showcasing resilience and promise this past month. According to the latest market trends report released by the Denver Metro Association of Realtors (DMAR), March witnessed a surge in new listings and marked a spirited 16.27% jump over the previous month. Active listings by month-end also saw a notable uptick of 6.13%, echoing a reassuring 29.52% rise year-over and an increase of 1.26% above the pre-pandemic benchmark set in March 2020.

As The Denver Post reports, approximately half of homeowners with a mortgage currently have a rate below 4%. The concept of selling and taking on a new loan closer to 7% has led to a phrase called “the golden handcuffs.” But, Libby Levinson-Katz, Chair of the DMAR Market Trends Committee, notes that “sellers have resigned themselves to the elevated interest rates and have begun to take the golden handcuffs off.” This surge in inventory is a welcomed sight for eager buyers, poised to make their moves.

Bolstering the buoyancy of the market, the median close price ascended by nearly 5% year-over-year to $595,000 with an average close price sitting at $703,330. A total of 3,512 detached and attached homes sold in March, which is an increase of 13% from last month. The median days on the MLS saw a 52.17% drop from February to 11 days, underscoring the swift pace at which buyers are eagerly snapping up new inventory, marking properties as “under contract” twice as fast as last month.

The rise in pending sales by a notable 31.94% to 4,317 properties, with a solid 7.47% gain year-over-year, further underscores the robust demand in the market. However, closed sales, a lagging indicator, depicted a more modest increase of 13.40% month-over-month to 3,512, reflecting a 13.37% decline from last year. But, with the rise in pending transactions, a subsequent surge in closings is anticipated in the coming month.

Delving into the segment dynamics, the $500,000 to $749,999 range continued to be the bustling hub for detached properties, witnessing 1,277 closed sales amidst 1,573 active listings. For attached properties, the $300,000 to $499,999 bracket remained the focal point, with 364 closed sales against 765 active listings.

All signs point to a hot market in late spring and summer this year. Andrew Abrams, a member of the DMAR Market Trends Committee, states, “While interest rates will pace the market, the seasonality will undoubtedly have a big impact.”

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