The May 2024 Denver real estate market trends are in. And spring is really starting to pop. The boost in housing market activity we expected last month might have just been on a bit of a delay. (Hopeful) homeowners are sick of the waiting game and the Fed finally fessed up about its rate plans.
The Feds are Changing Their Tune Same With Buyers and Sellers
Date the rate. Marry the house. It sounds like some try-hard home sales slogan. But there's historical data to back up this piece of homeownership advice. In the early 1970s rates were over 7%. If you had waited for rates to go down, it would have been a double-decade test of patience. Yup. Twenty years of renting, when you could have been a homeowner (building equity). And it would have been a lot of equity you'd missed out on. In those 20 years, home values just about quadrupled.
The better move? Walking those bell bottoms over to your trusted real estate brokerage and buying a wood-paneled split level with your 7+% mortgage loan, building all that equity, then refinancing once rates finally went down. So much better than missing out on wealth-building and a place of your own until macrame decor was replaced with brass fixtures.
For the past year (or so), hopeful homebuyers have been holding off on their ownership goals. With the promise of mortgage interest rate drops in the future, it just made sense. And this waiting game took hold of home sellers too. After all, who would want to sell a home with a 3% interest rate just to snag another at 7%? Hanging tight seemed to be the logical (non)move. But, time has passed and the Feds have changed their rate-dropping tune and both buyers and sellers are taking note. Rates might be dipping this year. They might not. And even if they do, we probably won't see a significant reduction. In the meantime, peoples' homeownership dreams haven't disappeared.
Knowing that a significant rate drop probably isn't on the horizon, buyers and sellers are showing signs that they're done playing the waiting game. They're okay with dating the rate for now because their long-term commitment to homeownership and wealth investment is worth taking action on now.
May 2024 Denver Real Estate Market Trends
How do we know that buyers and sellers and making their moves? May 2024 Denver Real Estate Market Trends indicate the shift.
Active listings were up by almost 20% since last month and a whopping 51%, as compared to the same time last year. Welcome back to the market, home sellers. New listings showed solid growth too, with a 21% jump since March and a 25% increase year-over-year.
Buyers are slowly stepping back into the market too. Pending sales jumped by 8% since last month and by nearly 6% since last year. Closed sales were up by only 2% since the month prior and showed a 5% drop year-over-year. This dip is likely due to the slower early spring market since closed sales trends are a lagging indicator. We can expect these numbers to increase in next month's market report.
Home price averages continue their very standard climb, with a nearly 4% increase month over month. Homes are also spending 25% less time on the market compared to March, indicating a resurgence of buyers. However, a 7% increase in days on the market compared to last year is primarily due to a much larger increase in inventory.
What Will the 2024 Summer Housing Market Bring?
Things are picking up steam in the Denver Metro Area's housing world and the country is taking note. According to U.S. News and World Report's latest analysis, the Denver-Aurora-Lakewood area takes the crown as the hottest housing market, nationwide. And, with the Fed stating that modest rate cuts might be down the road (and that hikes aren't on the horizon), summer real estate in Denver might be a-buzzing.
Ready to strike while the iron (and the mercury) is hot? Connect with one of our Denver real estate experts for personalized guidance.
Socials