A Busy, Yet Buyer-Friendly Denver Market
It was a bustling May for Denver real estate, primarily in the area of new listings—which further increased the number of active listings still available for sale at the close of the month. Looking at both detached and attached properties, new listings were up 16.51% month-over-month while pending sales only increased by 1.94%.
The result? Compared to April, the median price for a home in the Denver metro actually decreased slightly in May (less than a percentage point), and active listings shot up by 31.03% to 9,159.
These overall numbers heavily reflected the attached segment, such as condos and townhomes, so let's take a closer look at that data first. The number of new, attached listings increased by 11.93% compared to April and by 18.25% year-over-year. While pending sales managed a slight uptick month-over-month, they were down 15.35% compared to 2023. The median price of $407,250 was 4.18% below the prior year, and active listings came in a whopping 86.14% higher.
Yes, attached properties are seeing increases in HOA fees, assessments and property taxes. However, buyers can still find a fantastic deal while enjoying a variety of valuable amenities (e.g. a pool, fitness center, building security, dog park, or storage unit), a lock-and-leave lifestyle in many cases, and low-maintenance living. Don't want to shovel snow or mow a lawn? Go and find yourself a bargain in this segment—the time is ripe for buyers to negotiate.
As for the single-family, detached market, home sellers who purchased or refinanced at much lower, "pandemic" rates continued to release their golden handcuffs. There were 5,165 new listings in May compared to 4,370 in April and just 3,680 in 2023, which is an increase of 40.35%. Pending sales came in at 3,239 which is an increase of 2.31% month-over-month and 12.70% year-over-year. Closed sales were up by 3.05% YoY as well.
Of course, if you add 5,165 new listings in May to the 4,719 active listings that were still available at the close of the prior month, and then subtract 3,239 pending sales—the math shows inventory continuing to improve the market for buyers. With higher interest rates persisting, something had to give.
In fact, with 6,352 active listings at the close of May (an increase of 34.60% month-over-month and 70.75% year-over-year), today's buyers are flush with choices. It's no wonder that the median price of $660,000 was relatively flat across the board—down by 0.41% compared to April yet up by 0.53% compared to 2023.
As for pace, things picked up a bit compared to April with days on market decreasing from 29 to 25. Last year, homes went under contract in just 21 days, further indicating that the significant inventory increase is giving Denver buyers a lot of homes to sort through and choose from right now. Well-priced, turnkey homes are going quickly while "fixer uppers" are sitting longer.
"That is why it's so important for sellers to take the time to prepare their homes for the market," says Libby Levinson-Katz, Chair of the DMAR Market Trends Committee. "Those who take their Realtor's® advice have found themselves moving to the closing table more quickly than their neighbors who have not put the time and energy into getting their homes ready to list."
With the typical summer slowdown just around the corner, it's always best to work with an experienced real estate agent who can better assess the market and provide a smart strategy, as well as negotiate and advocate on your behalf. A proven professional will have the expertise, connections and resources to help you achieve your real estate goals. Choose your agent wisely.
How to Get Your Home Ready for Listing Photos
With active inventory on the rise, it's more important than ever that sellers take the steps needed to ensure their homes look amazing in photos.
According to a study by the National Association of Realtors, 96% of buyers who search for a home online found photos to be useful. It's no wonder that photos maximize the number of potential buyers who will want to see your home, and most importantly, book a showing and even make an offer on it.
Preparations for photography not only take a good cleaning (which PorchLight and our agents provide) but two key components:
- Decluttering – Not everyone is a maximalist! Removing extra stuff like mail and other paperwork, kitchen counter gadgets/appliances, phone charger cords, child/pet toys, and excessive knickknacks will keep all eyes focused on the charm of your home and make every space look bigger.
- Depersonalizing – Be sure buyers can imagine moving into the home by tucking away or packing up family photos, taste-specific art or decor, as well as personal care products, especially in bathrooms. You may also want to consider repainting if your home reflects your love of bold color.
Now, let's get a little more specific. Here's a quick checklist to help you prepare your home for photos:
General Prep
- Turn on every light and open up the curtains or blinds. Light and bright is the goal.
- Remove small rugs and runners that hide floors or look cluttered and fussy.
- Turn off all ceiling fans, TVs and computer screens to create a serene, relaxed space.
Kitchen
- Clear the counters of non-decorative and excessive items. Maximize your counter space.
- Make sure there are no dishes in the sink—tuck the drainer and cleaners underneath.
- Remove photos, magnets and artwork from the fridge so cleaners can give it a good shine.
Bathroom
- Remove soaps, toothbrushes, medication, razors, etc. Less clutter is always better.
- Fold and neatly hang up fresh, clean towels. Go for a spa-like or hotel vibe.
- Even if its been freshly cleaned, always check that the toilet seat and lid are closed.
Outside
- Put hoses, garbage cans, bikes, tools and toys away. Add decorative touches.
- Keep your lawn lush and landscape in good shape, trimming and mowing as needed.
- For privacy and great curb photos, no vehicles in the driveway and close the garage.
Pets
- For their peace of mind and our safety, keep pets offsite for the photoshoot.
- It's nobody's favorite chore, but make sure there’s absolutely no pet waste in the yard.
- Remove beds, crates, cat trees, food bowls, toys, etc. Don't scare away allergic buyers!
Staging
- Make beds, fluff pillows and straighten throw blankets. Remove clutter under beds, too.
- Put all shoes, jackets and strollers neatly in a closet. Again, clutter is a big turn-off.
- Add a vase of flowers or bowl of fresh fruit. Simple, classic touches look fab in photos.
