The Denver real estate market continues to stabilize, leaving buyers and sellers looking ahead to the spring selling season to provide insights into how the rest of the year will unfold.
Buyers are watching rates closely and patiently waiting for new inventory to hit the market. They are more discerning about home prices, less willing to compete and will only jump into a bidding war if the house is move-in ready and suits their needs. If a home has been sitting on the market or has recently experienced a price reduction, buyers are more inclined to negotiate a rate buy down than a reduction in the purchase price. As buyer activity increased in February and more homes hit the market, the median close price for a detached home rose 0.84 percent to $600,000, while the median price for an attached home rose 1.14 percent to $400,000.
New listings, pending sales and closed sales all trended upward month-over-month for attached and detached homes, with the largest gain in closed sales increasing 25.30 percent. The median days in MLS for detached homes dropped 29.73 percent from 37 days in January to 26 in February. Meanwhile, the median days in MLS for attached homes dropped 17.86 percent from 28 to 23 days.
While activity in the market is on the rise, buyers are eager for more choices. At the end of the day, Denver still has an inventory problem. New listings for both detached and attached homes are the lowest we have seen since 2014.
The source for more inventory lies with potential sellers who are contemplating a move; however, if these sellers need to buy another home, they are between a rock and a hard place. Their home is no longer working for their lifestyle, but facing an interest rate that may be more than three percent higher than their current rate is a hard pill to swallow. The good news for sellers is that we are still primarily in a seller's mar-ket. The close-price-to-list-price ratio is inching up for both segments with detached homes sitting at 98.81 percent and attached at 99.06 percent showing that buyers are paying what sellers are asking.
The unseasonably cold winter weather and Punxsutawney Phil have left many Denverites longing for spring, more inventory and a fresh start for 2023.
February 2023 broke records in two categories. In this report, the DMAR Market Trends Committee examined the records broken last month.
CLOSE PRICE — AVERAGE
(Residential) $657,921 represents the highest February on record. The previous record high was 2022 of $649,536.
(Attached) $473,995 represents the highest February on record. The previous record high was 2022 of $459,690.
NEW LISTINGS
(Residential) 3,451 new listings represents the lowest February on record. The previous record low was 2009 with 3,755.
(Detached) 2,414 new listings represents the lowest February on record. The previous record low was 2009 with 2,857.
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 Classic Market from W+M agent, Molly Polinkovsky.
