January 2024 Denver Metro Residential Real Estate Market

Entering the new year, Buyers are seemingly optimistic, re-enter the real estate market with increased choices. New listings surged by 14.73 percent to 3,280 year-over-year, notably with detached properties showing a 17.94 percent increase to 2,301. Pending home sales experienced a 6.5 percent boost to 3,294, accompanied by a 5.88 percent rise in median days in MLS to 36 days. Lagging by 6.26 percent, closed sales are not surprising, considering they reflect homes sold in January that went under contract in December. Comparing numbers from January of this year to the previous one is preferable, given December's traditionally low inventory.

In the realm of single-family homes, pending sales rose by 11.95 percent year-over-year, with the median close price reaching $625,000. The median time on the market remained constant at 37 days, while the close-price-to-list-price ratio increased to 98.34 percent. Reports suggest competitive listings are garnering multiple offers, a departure from last year's trend of full-price offers with substantial concessions.

However, attached pending sales showed a 6.61 percent year-over-year decline to 848 from 908. Closed sales also decreased by 13.70 percent, with the median close price staying at $395,000—$25,000 less than December's median sales price. Additionally, the median days in MLS increased to 34 days from 28 in January last year.

Breaking news this month reveals that the Fed has kept interest rates unchanged. An adjustment is not anticipated until spring at the earliest, offering a much-needed respite and alleviating uncertainty related to the presidential election.

The upcoming spring selling season is predicted to be robust, driven by pent-up demand and favorable lending terms. While not a consistent forecast, a decline in interest rates below five percent may lead to tighter inventory and increased competitiveness. Many buyers await further interest rate decreases, yet attempting to time the market for lower rates before it heats up could result in higher long-term costs in bidding wars. Hence, being an advisor to clients becomes crucial in helping them comprehend the risks and rewards of waiting.

If you're thinking about moving in Boulder or Denver and want to set up a strategy and timeline for your move, let's chat and set up a custom plan that works for you.  Get in touch with Megan Douglas as your Realtor for your next move.