As we head into spring, Denver’s housing market is showing signs of movement… but not enough to call it a comeback. The February numbers paint a picture of a market still adjusting to higher rates and affordability pressures, even as inventory continues to climb.
More Listings, But Are Buyers Showing Up?
According to the Denver Metro Association of Realtors, active listings at the end of February were up 11.26% from January and a massive 55.22% over last year. New listings also saw an 11.17% month-over-month bump. More homes hitting the market should be good news, right?
Maybe. But the gap between what’s for sale and what’s getting sold is still wide. Pending sales rose a healthy 22.42% month-over-month, but that increase isn’t enough to close the distance. And closed sales? Still down 17.29% compared to last year - a reminder that many buyers are still sitting on the sidelines.
Prices Hold Steady… For Now
Even with inventory rising, home prices continue to show resilience. The median closed price rose 4.35% from January and is up the same amount from last year, now sitting around $585,000. Average prices saw a 2.45% month-over-month bump, holding a 3.93% increase year-over-year.
In other words, prices are rising. Just not at the pace of a few years ago. Sellers may not be slashing prices, but buyers know they have an edge.
Homes Are Moving Faster (Sort of)
Buyers who are jumping in are acting quicker than they were just a month ago. Average days on market dropped nearly 10% month-over-month, and median days on market fell a sharp 35.56% from January. Still, compared to this time last year, homes are sitting longer, up 19.57% and 26.09% year-over-year (average and median, respectively).
Corcoran Perry & Co. Featured Listing: 50 S Eudora Street, Hillltop
What’s Really Happening?
The market isn’t frozen. But it’s far from fully thawed. Rising inventory and slowly increasing sales signal a market trying to find balance. Buyers are cautious, likely still waiting for mortgage rates to drop (no luck yet), while sellers hold onto price expectations shaped during the height of the pandemic boom.
So, what would it take to fully unfreeze the market? More inventory and meaningful relief on rates. But as experts point out, if rates fall too fast, pent-up demand could drive prices right back up.
For now, expect a market that keeps moving. Just not quickly.
Ready to take advantage of the larger list of listings? Interested in selling while the market remains so stable? Our Denver real estate experts are here to help.
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