Metro Denver Housing Market Shows Resilience Amid Rising Rates and Seasonal Slowdown

by | Oct 5, 2023 | Blog, Denver Real Estate Market, Real Estate | 0 comments

As fall gets into full swing, the Denver Metro housing market is showing signs of resilience despite the typical seasonal slowdown, according to the Denver Metro Association of Realtors’ (DMAR) monthly report.  Even with the usual slowdown during this time of year, home prices have held steady or even experienced slight increases. 

This month’s data paints an intriguing picture of the market’s evolution. In September, listings decreased by 5.92 percent, bringing the total to 4,589 homes, while the number of active listings at month’s end has seen a noteworthy 11.24 percent uptick, reaching 7,629 listings. Pending sales have taken a 9.29 percent dip, and closed sales are down by 20.88 percent, resulting in a corresponding decrease in sales volume.

Months of inventory have seen a substantial 47.24 percent increase, now standing at 2.4, while the median time a property spends in the MLS has risen by 27.27 percent, from 11 to 14 days, compared to last month. Interestingly, this represents a 12.5 percent drop from days on market in September of 2022. 

Amid these fluctuations, there’s a bright side for homeowners: the median price point has grown by a healthy 0.69 percent from the previous month, now resting at $585,000. Median prices year-over-year have also increased by 0.86 percent. Furthermore, the close-price-to-list-price ratio has inched up by 0.31 percent year-over-year, now standing at 99.19 percent. 

Libby Levinson-Katz, Chairwoman of the DMAR Market Trends Committee, highlights that, “While these are marginal changes, this small indicator showcases that prices are still strong in the Denver Metro Area.”

 As prices hold steady and supply remains relatively tight, it remains a seller’s market overall. Buyers continue to weigh strategies of negotiating a lower sale price, seeking concessions or both. Sellers will benefit from smart pricing and highly effective marketing to engage those buyers most affected by higher mortgage rates.

In spite of the headwinds, the Metro Denver housing market continues to exhibit remarkable strength and adaptability. With resilient prices and opportunities for negotiation, both buyers and sellers have reasons to remain optimistic.

Curious about Denver real estate?

Have questions about the Denver market?