spring home market blooms early in denver metro
/
By Sara B. Hansen | Published on March 8, 2024
Denver’s housing market surged in February as the snow melted and temperatures climbed. More sellers opted to list their homes, the median sale price increased, and the number of days on market dropped, according to the monthly trends report from the Denver Metro Association of Realtors.
“The days when sellers waited for their spring gardens to bloom before listing their homes for sale are now long gone. The February weather may have said ‘winter,’ but the market said, ‘spring,’” said Colleen Covell, an association market trends committee member and realtor at Mile Hi Modern, in the February report.
“The early rush hour in our market signals the pent-up desires of sellers, who have been sitting on the sidelines due to the dramatic run-up in interest rates since last spring. Although the rates have decreased some from their highs last fall, they do not appear to be dropping below six percent anytime soon. Tired of waiting for optimum sale and rate conditions, sellers decided to jump back in.”
At the end of February, the number of active listings was 5,511, up 46% from the 3,778 in February 2023 and 350% from the 1,226 available in February 2022. The number of active listings was also up 13% from January’s 4,871 available homes. That increase was the second largest percent increase on record, the DMAR report said. Historically, the average number of available listings in February is 12,671.
Pent-up buyer demand is keeping prices high and cutting the days on the market.
February’s median close price climbed to $576,584, up 2% from $565,000 in January and up 2.4% from $563,000 in February 2023.
The number of days on market dropped to a median of 23 in February from 36 in January.
Buyer demand also pushed the close-to-list price ratio to 99.3%, up from 98.4% in January and 98.9% in February 2023.
The number of closed sales, 2,864, was up 31% from January’s 2,183 closed sales but down slightly from February 2023’s 2,877 closed sales.
“Well-informed and educated sellers know interest rates have ticked up again, however, they also know that many buyers are experiencing spring fever and are sick of sitting on the fence watching home prices increase,” said Libby Levinson-Katz, chair of the DMAR Market Trends Committee.
Levinson-Katz said savvy sellers who ensure their homes are in show-ready condition by removing clutter, servicing their HVAC systems, washing windows, and cleaning sewer lines experience multiple offers and maximize their profits.
But buyers are becoming more demanding because they have more options. Buyers also know “they can negotiate on price and terms up-front, as well as negotiate at inspection,” Levinson-Katz said.
“Difficult inspections have been on the rise over the last few months. If buyers feel they are paying top dollar due to increasing mortgage rates, they want their new home to be in move-in-ready condition.”
The news and editorial staffs of The Denver Post had no role in this post’s preparation.