Denver Real Estate Springs Forward: Surge in New Listings

Spring has sprung ushering a wave of new listings, satisfying the many home buyers who have entered the market in 2024. Here's a look at the latest numbers and what it means for prospective buyers and sellers.

The Latest Numbers

This March saw a notable 16.27% month-over-month leap in new listings, totaling 4,932 homes entering the market. Current active listings have increased by 6.13 percent, and the month's active listings of 5,849 are 1.26% higher than the year-to-date figures pre-pandemic March 2020.

Denver's housing market continues its upward price trend with the median close price increasing by 3.48% to $595,000. This follows a seasonal pattern of peaking in June and moderating towards the end of the year. Noteworthy is the median days on the market in the MLS, which plummeted from 23 days in February to just 11 days in March, demonstrating a brisk market where properties are being snatched up twice as quickly as the month before.

Pending sales saw a 31.94% increase, with 4,317 properties under contract, outstripping the 7.47% year-over-year gain in closed sales. March's closed sales did dip by 13.37% from February's figures, but since closed transactions reflect past activity, it's expected that the swell in pending transactions will translate to more closings in the upcoming report.

The most vibrant price segment remains the $500,000 to $749,999 bracket for detached homes, which also reflects a significant inventory of available properties. On the other hand, the attached homes in the $300,000 to $499,999 range also showed healthy activity with both sold and active listings.

What Sellers Should Know

Yes, homes are selling fast. But the homes selling the fastest have been marketed and priced properly. Given that mortgage rates are still hanging on around 7%, home buyers have become very sensitive to overpriced properties. Good buyers agents will run a market analysis on each property their client is interested in to prevent them from overpaying. The homes having the most success are actually priced slightly under market value, creating early interest in the listing and potentially multiple offers. Spend too long on the market and you will become subject to bottom feeders and low ball offers.

Beyond pricing, exposure to the market should remain a top priority for home sellers. Getting professional photos on Zillow is just a starting point. Get your home looking it's best. Then, maximize the number of potential sellers who see your home with a marketing strategy that includes targeted mailings, email blasts, social media advertising and open houses. Remember, the more exposure your home gets, the better chance you have of receiving a great offer.

What Buyers Should Know

Buyers, if you can handle the higher rates, it's not a bad time to buy. The increase in listings means you have more to choose from. The higher rates mean you have less competition. If and when rates do come down, expect to see many more buyers (your competition) enter the market and write strong offers on those turn-key homes.

If the home you like is not hyper competitive (yes, there are a few bidding wars happening these days) you may have an opportunity to ask the seller for some help with your closing costs or buying down your interest rate, temporarily reducing your monthly mortgage payments.

Conclusion

As the days grow warmer, sellers and buyers are adapting to higher interest rates. Some homeowners are pressing ahead with sales, using their equity to downsize or secure more favorable loan terms. Despite different strategies, the sentiment is unified: more inventory is welcomed. 

Want more specific data for your neighborhood? Want to strategize your next real estate move? Contact Ryan Haarer, Denver Realtor at 303-507-5910