Reflecting on the past year and looking forward to the possibilities ahead, the Denver Metro Association of Realtors (DMAR) expresses optimism and opportunity. Libby Levinson-Katz, Chair of the DMAR Market Trends Committee, conveyed positivity in the latest report – noting that 2023 was a challenging year with limited inventory and rising interest rates, but “buyers and sellers found a way to come together in a stabilizing market.”
DMAR’s statistics show that the Denver area kept a consistent seasonal rhythm in December. Compared to last year, the average days on market was only up by only 6.98%. While active listings dipped from November to December by 25.63%, this is a seasonal norm in line with the past decade’s average at 22.5%.
Single-family homes outperformed attached homes in the year-over-year analysis. Single-family homes witnessed an increase in new listings and pending sales, with a rise in median close price and a decrease in median days in MLS. For single family homes, new listings increased 4.33% and pending sales show a healthy rise of 12.98% compared to last year.
While attached homes were “a bit more sluggish,” says Levinson-Katz, with new listings down 10.77% year-over-year, pending sales of attached homes increased by 5.95% and the average days on market was only up by five compared to last month.
Meanwhile, the average close price for detached and attached residential real estate held strong at $657,229 – down 0.51% from November and up 3.32% year-over-year.
The performance of 2023 resembled the pre-pandemic year of 2019, with similar sales volume despite a slightly higher median close price. Looking ahead, national predictions indicate a modest increase in inventory, with prices expected to remain relatively stable, but Denver has a track record of outperforming national trends.
The anticipation of declining mortgage rates adds confidence to what lies ahead for the Denver market in the new year. Levinson-Katz predicts that pent-up demand and favorable lending terms will lead the selling season to start earlier this year, and she also anticipates an increase in inventory throughout the year and more buyers entering the marketplace. Reporter Kyle Harris of Denverite echoed this positive sentiment, stating that “realtors are bullish about making more deals in 2024.”
The DMAR report also notes that realtors are reporting an increase in buyers looking to purchase a home in early 2024. The trajectory of the year hinges on factors such as interest rates and consumer confidence, and the Denver market continues to display remarkable dynamism and resilience, setting the stage for an exciting year ahead.