Denver’s Real Estate Market Heats Up: A Summer Surge in Listings

by | Jun 6, 2024 | Blog, Denver Real Estate Market | 0 comments

Stepping into summer, the three P’s are crucial for success: preparation, persistence, and patience, notes Libby Levinson-Katz, chair of the Denver Metro Association of Realtors (DMAR) Market Trends Committee. Sellers who properly prepare their homes to compete in the market end up finding a buyer more quickly. Buyers with persistence are better equipped to land their dream property. And, both sides need patience while navigating the current landscape.

According to the latest DMAR report for May 2024, the Denver metro area has seen a notable increase in real estate activity. New listings surged by 16.51% month-over-month, reaching a total of 6,966 homes. Pending sales saw a modest increase of 1.94%, while closed sales rose by 5.72% to 4,198. The median close price for May was $600,000, a very modest dip over last month of just 0.41%.

The most striking news is the surge in active listings, which, as The Denver Post reports, “gives buyers 75% more homes to mull over than they did a year ago.” This marks a 31.03% increase over April, reaching over 9,000 homes. And, this is a 150.79% increase from the same period in 2022, defying expectations that inventory would remain flat unless mortgage rates dropped significantly.

For sellers, preparation is crucial. Those who meticulously prepare their homes and heed their agent’s advice are finding buyers more quickly in this competitive market. Homes are selling close to listing price, with an impressive sale-to-list ratio of 99.8%. Despite the increased inventory, the median days in MLS is nine, slightly longer than six days in May 2023, yet still indicative of a brisk market.

Buyers, on the other hand, are benefiting from increased choices and a growing inventory, now at 2.18 months’ supply, a 16.58% increase over April. This expanded selection allows buyers to be more selective and negotiate better deals.

The condo market presents unique challenges as many HOAs have been forced to raise association dues reflecting the increased costs of maintaining, replacing, and insuring their community’s infrastructure. Denverite reports that condo owners are paying more to hold onto their properties, thus they aren’t appreciating as quickly as they did previously with buyers hesitant to take on these additional expenses. The result in attached homes is a median close price of $407,250, a 2.8% month-over-month decrease and a 4.18% year-over-year decline.

Levinson-Katz notes that market motivations are varied. Transactions are driven by strategic moves ranging from tax deferred exchanges, to generational shifts, to “right sizing,” underscoring the lasting value of real estate investments. As the Denver metro real estate market evolves, embracing patience, preparation, and persistence remains crucial for both buyers and sellers aiming to negotiate favorable deals heading into the second half of the year.

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