Denver Real Estate Perks Up Post-Holidays
Right out of the gate in 2024, Denver buyers and sellers flocked back to the market. New listings for both detached and attached homes increased by 89.92% month-over-month and pending sales jumped by 42.6% compared to December and 6.5% year-over-year.
Looking closer at the January numbers for detached, single-family homes, new listings coming on the market increased from 1,229 in December to 2,301 for the month, that's an 87.23% difference. Buyers responded by snapping up 2,446 homes, a 50.06% bump in pending sales month-over-month.
One interesting figure is average days on the market which increased from 46 to 50 in January. Buyers evidently took their time browsing new inventory.
So, how did this affect prices? Typically, a rush of inventory would cause prices to drop. However, there's still pent-up demand. However, interest rates still remain high.
With this push-pull happening, detached home prices did increase but not by a lot. In January, the median price of $625,000 came in 2.46% higher than December and 4.18% higher than January 2023.
By the close of the month, 3,336 listings remained active and on the market. That's 4.82% below December but 15.31% higher than in 2023. So, the race between pent-up demand and pent-up inventory remains unclear as we start eyeing what the typically busy spring season will look like.
The attached market, including townhomes and condos, also came in hot with new listings nearly doubling month-over-month, 96.59% higher than in December. However, pending sales only increased by 24.71%, possibly causing prices to dip down to $395,000 compared to $420,000 the prior month.
Again, the typically busy spring season will continue to hinge on inventory, demand and mortgage rates. The Fed meets again in March and if they drop the federal interest rate, mortgage rates could follow—which will likely cause a surge in buyer activity.
Here's what Libby Levinson-Katzs, Chair of the DMAR Market Trends Committee, has to say about timing the market:
"While it's not a consisten prediction, if interest rates decline below five percent, we may see tigher inventory and more competitive scenarios once again. Many buyers are waiting on the fence for interest rates to continue their downward descent, however, trying to time the market for lower interest rates before the market heats up my result in buyers paying more in the long term if they find themselves in a bidding war."
Basically, if you're waiting for interest rates to drop before jumping into the hunt for a new home, you could wind up paying more by getting into a bidding war with other buyers who are doing the exact same thing. Your best bet is to work with a seasoned real estate advisor who can better assess and time the market, as well as help you understand both the risks and rewards of waiting.
Architectural Styles Explained
If you're house hunting in Denver, Boulder, and the surrounding areas, you’ll find fascinating architecture of all types. This handy guide will help you get acquainted with the metro area’s most common styles.
If you want to see these styles of homes in person, be sure to schedule a Market Education Day, exclusively available through a PorchLight agent. They will take you on a tour of properties that match your lifestyle, budget and wish list. It's a great way to get a more holistic understanding of the market and even fine-tune your home search criteria.
Craftsman—This popular style of home dates back to the late 19th century and features:
- Low-pitched gable roof
- Natural materials and colors
- Robust, tapered columns
- Wide and covered front porch
- One or two stories, open floorplan
- Exposed beams and rafter tails
Bungalow—Primarily built from 1915 to the 1930s this style has many distinct features:
- Low-pitched roof
- Dormered windows
- Covered front porch
- Square porch columns
- Built-in cabinetry
- Exposed beamed ceilings
Victorian—Built from 1810-1910, the most popular being a Queen Anne, this style features:
- Steep, gabled roof
- Elaborate wood trim
- Bright paint colors
- Asymmetrical shape
- Towers and turrets
- Two or three stories
Denver Square—Built from the 1890s to 1930s and also known as a Foursquare, this style offers:
- Square and brick-built
- Sloped, four-sided roof
- Large windows
- Center dormer with window
- Wide front porch
- Defined interior spaces
Ranch—Popular in the 1950s and '60s, the single-story ranch is often characterized by:
- Low-pitched roof
- Deep, overhanging eaves
- Large picture windows
- Backyard with patio or deck
- Simple, open floorplan
- Attached garage or carport
Modern—This broad-ranging home style continues to evolve but typically includes:
- Simple, clean, straight lines
- Industrial/sustainable materials
- Lack of ornamental detail
- Large windows and skylights
- Open, flowing interior
- Energy-efficient features
Tudor—Built from 1925-1945, with Medieval and Renaissance influences, Tudors include:
- Steeply pitched roof
- Half-timbered (wood/stucco)
- Tall, multi-pane windows
- Ornate chimneys
- Substantial wood front doors
- Cantilevered second story
