Buyers are back in the market with bidding wars being reported again, much to the delight of sellers.
In fact, buyers were so keen to jump back into the market that active listings at month end dropped 13.39 to 4,120 properties. Sellers who held off listing their homes over the holidays were eager to get their homes listed to kick off the New Year right, with new listings increasing 65.20 percent to 2,858 listings.
While activity picked up from the holiday market, median days in MLS also increased by 13.33 percent to 34 days. This starkly contrasts a year ago when the median was a meager five days. While homes are not flying off the market within a weekend, buyers are still in the market. They have wrapped their heads around higher interest rates, have factored in rate buydowns into their purchase costs and are simply taking their time to find the right home.
Although homes are selling a bit slower, the median close price dipped slightly by 3.33 percent to $536,500 market-wide with the real change occurring in the attached market with a 2.93 percent decrease to $397,000 compared to a 0.83 percent decrease in the detached market to $595,000. Additionally, the close-price-to-list-price ratio decreased by 0.27 percent month-over-month to 98.15 percent. This is a 3.90 percent decrease from this time last year prior to the seismic interest rate hikes that occurred in mid-2022. These numbers continue to showcase Denver's stability, as prices have not varied even though affordability for buyers has been greatly impacted by rising interest rates.
January 2023 broke records in three categories, including one all-time record. In this report, the DMAR Market Trends Committee examined the various records broken last month.
CLOSE PRICE — AVERAGE
(Residential) $626,311 represents the highest January on record. The previous record high was 2022 of $609,056.
(Detached) $702,289 represents the highest January on record. The previous record high was 2022 of $688,895.
NEW LISTINGS
(Residential) 2,858 new listings represent the lowest January on record. The previous record low was 2022 with 3,485.
(Detached) 1,950 new listings represent the lowest January on record. The previous record low was 2022 with 2,376.
(Attached) 908 new listings represent the lowest January on record. The previous record low was 2008 with 910.
CLOSED
Buyers are actively looking and the majority of the market still favors sellers. Homes may not sell in the first week-end, or even the first 30 days, but they are selling and prices are staying strong. As we enter Denver's spring market, which traditionally starts this month, there is still much to love about the 2023 real estate market.
Learn more about the market from the Denver Metro Association of Realtors.
Keep reading for an expert opinion on the Signature Market from W+M agent, Nick DiPasquale.
