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Denver Real Estate Market Stats: Februrary 2024

Denver Real Estate Market Stats | February 2024 | PorchLight Real Estate Group

Denver Real Estate Kicks Off the Busy Season Early

Buyers and sellers continued to heat up Denver real estate in February. Looking at the market as a whole, including both detached and attached properties—new listings, pending sales, and closings increased by double digits month-over-month while average days on market decreased.

However, the median price only increased by 2.05% compared to January and 2.41% compared to the same month in 2023. With an infusion of inventory and today's higher interest rates, the days of skyrocketing home prices appear to be behind us.

Now, looking closer at detached, single-family homes, new listings coming on the market increased from 2,305 in January to 2,998 in February, a 30.12% difference. Buyers responded by going under contract on 2,568 homes, a 10.79% bump month-over-month and 5.12% higher than in 2023. Closings, which primarily reflect homes that went pending in January, also rose by 33.16% month-over-month.

Denver Real Estate Market Stats | February 2024 | PorchLight Real Estate GroupAnd while days on market increased in January, things started picking up in February. The average dropped by four days and by 6.12% year-over-year. Selling still calls for patience though, as the average DOM currently sits at 46. 

Also in February, the new listings count of 2,304 homes nearly kept pace with the number of homes going under contract—2,318 properties. The result was detached home prices increasing but not by a lot. The median price of $633,000 was just 1.28% higher than January's $625,000 and 5.5% higher than $600,000 in February of 2023. Again, prices in today's more normal market are far more tempered than in the past.

The month also closed with 3,748 active listings on the market. That's 12.35% higher than January and a 43.16% increase over 2023. This is a key number to watch. With new listings keeping up with demand, the backstock of inventory remains.

So, if new inventory continues to surge and pending sales drop, buyers will be in a very good position. And sellers will gain traction if inventory drops and pending sales increase. Which way the market goes remains to be seen.

As for the attached market, such as townhomes and condos, market activity was similar to detached homes. New listings increased from 982 in January to 1,245 in February. Pending sales also increased by 18.25% month-over-month while closings jumped by 26.21%. The median price of $410,000 came in 4.13% higher compared to the prior month but only 1.23% above the 2023 price.

As stated, the typically busy spring season will ultimately reflect the state of inventory, demand and mortgage rates. The Fed meets again later in the month and if they drop the federal interest rate, mortgage rates could follow—which will likely cause a spike in buyer activity. 

For now, here's what Libby Levinson-Katzs, Chair of the DMAR Market Trends Committee, has to say about today's buyers:

"They are also aware that they can negotiate on price and terms up-front, as well as negotiate at inspection...and negotiate is what they are doing. 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 home to be in move-in ready condition and are making sure the seller handles deferred maintenance before closing."

And today's sellers:

"As a result, sellers who are winning in this market spent time making sure their homes are in show-ready condition. Clutter has been removed, HVAC systems have been serviced, windows have been washed and sewer lines have been cleaned. 

With the market presenting both opportunities and challenges for both buyers and sellers, your best bet is to work with a seasoned real estate advisor who can better assess the market and provide a smart strategy, as well as negotiate and advocate for your best interests. A proven professional will have the experience, connections and resources to keep your deal on track until closing. Choose your agent wisely.

Hail Season Starts Next Month—Are You Prepared?

Colorado's hail season typically runs from April 15th until September 15th, though storms are always a possibility earlier or later than this timeline. If you're currently a homeowner or plan to be one in the coming months, here's how to prepare as well as what to do in case of a damaging storm.

BEFORE a Hailstorm

  • Review Your Homeowner’s Insurance Policy – Review and even talk to an agent about your coverage for hail damage, adjust or add riders if needed. In particular, look at your level of coverage—actual cash value, replacement value, or guaranteed/extended.
  • Trim Trees and Shrubs – Hail and a storm’s accompanying wind can easily knock leaves off plants and trees, even snap branches or cause trees to fall. Walk your property with a professional to identify and prune areas that could break and damage your home.
  • Reinforce Your Windows, Doors and Roof – If budget allows, consider installing storm shutters, as well as an impact-resistant roof and windows. For your roof, Class 4 shingles provide the best possible protection from hail. Installing a steel roof is another option.
  • Take Action If Hail Is Forecasted –Keep an eye on weather reports, and secure outdoor furniture and equipment in your garage or shed if needed. Park your car in the garage as well. You can also buy car covers that may provide some protection from small hail. 

AFTER the Storm

  • Address Severe Damage Immediately – To prevent further issues, hire a contractor or reputable disaster response company to board up broken windows, cover holes in the roof with tarps, and handle any other issues that require immediate attention.
  • Inspect and Document Your Property – Carefully take photos or video of leaks, as well as damage to windows, siding, gutters, doors, and A/C units—leave the roof to the pros! Measure hail size if possible and pull documents relevant to the value of all items.
  • Arrange for Professional Inspections – Hire a contractor or roofing specialist to perform a detailed inspection of your home's roof and entire exterior. They may identify damage that wasn’t visible at first and provide you with a comprehensive assessment.
  • Contact Your Insurance Company – File a claim right away. Insurance will then send out an adjuster to assess. Provide them with all documentation and repair quotes so they can process the claim. Remember, you can negotiate and even appeal their initial offer! 

If a PorchLight agent helped you buy your home, or if you're currently on the hunt with one of our advisors, feel free to ask them for more insight and contact information for reputable pros who can also give you a hand. Beyond buying and selling, we are your experts for all things home!

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