Pending Sales Up, But Inventory Continues to Rise
Following the typical pattern for real estate, the Denver market was relatively quiet last month. A bump in pending sales likely reflected mortgage rates easing in anticipation of a coming interest rate drop. However, detached home prices remained tempered and active listings increased year-over-year.
Looking at the single-family, detached segment, there were 3,690 new listings in August. While up by 7.21% compared to the prior year, this number continues to drop month-over-month. While somewhat typical for this time of year, it could also mean that home sellers are waiting to go on the market once The Fed lowers interest rates—which in turn will likely lead to lower mortgage rates and potentially more buyers.
As for last month's 2,836 pending sales, that figure increased by 2.38% compared to July and by 13.62% year-over-year. Despite this uptick, the Denver real estate market remains decently stocked with inventory. August closed with 7,497 active listings which is an increase of 1.72% versus July and 50.85% more inventory than 2023. This has created a more buyer-friendly environment that may or may not last for very long if and when an official interest rate decrease happens later this month.
Meanwhile, buyers who know, know. They are shopping around. Days on market for detached homes stands at 36, up by 28.57% month-over-month and by 38.46% year-over-year. The median home price of $650,500 is slightly below July's and basically on par with 2023. And buyers are paying 98.6% of the asking price as well, which means they are getting thousands of dollars in savings right off the top.
In addition, buyers continue to negotiate while sellers who want to keep their deal on track continue to adjust their prices, offer concessions, and meet in the middle with buyers who put an offer on the table.
Libby Levinson-Katz, Chair of the DMAR Market Trends Committee, had this to say about the Denver real estate market:
"Generally, there does not seem to be a large sense of urgency for buyers or sellers. Buyers continue to watch the homes that have come up on searches and may even be tempted to take a look. However, they aren't placing offers on homes unless it perfectly aligns with their wish list. The DMAR Market Trends Committee has noted that transactions falling out of contract are on the rise. This may be due to cold feet from buyers, the rise in contingent offers, lending issues, or bullish sellers unwilling to negotiate inspection items."
As for attached properties, such as condos and townhomes, the numbers were more extreme in certain areas. New listings were down just slightly month-over-month and year-over-year. Pending sales increased by 7.91% over July but decreased by 6.56% compared to 2023. Closed transactions also decreased by 27.40% year-over-year and total sales volume is down by 32.67% from last year's numbers.
The outcome was 3,227 active listings at the close of August, another massive increase of 70.92% compared to the prior year. The average time on market also came in at 41 days, 64% higher than in 2023.
This likely reflects, "higher HOA dues, along with increased taxes and insurance premiums," states Levinson-Katz. "Some associations have adjusted their deductible to help offset costs, but those changes have in turn made lending more difficult. As a result, this segment has become more challenging to put transactions together."
Accordingly, the median price for attached properties came in at $396,350 which is a decrease of 4.49% compared to the prior month and 5.18% below the prior year. And sellers are continuing to close for below their listing price. Again, there are potential bargains to be found and room to negotiate, but keep in mind the pros and cons, and always work with a real estate agent to look into an HOA's finances before moving forward.
Want to discuss your buying or selling strategy further? An experienced real estate agent can better assess the market and provide a smart approach, as well as negotiate for you along the way, especially when that inspection report comes in. A proven professional will have the expertise, connections, and resources to help you achieve your real estate goals. Choose your agent with care and don't skip out on proper representation.
A Better Home Search with RealScout from PorchLight
Whether you’re looking to buy, sell, or simply stay current with what’s going on in the local market, your PorchLight agent can connect you to the most advanced search technology available.
Our powerful search platform, RealScout, can be fully tailored to your budget, needs, and even preferences like an updated kitchen with an island or homes located near a park. Only available through your PorchLight agent, it’s the fast and easy way to find a home that checks all the boxes! Here are just a few key features:
- For the most current and accurate data, listings are pulled directly from the MLS every 30 minutes.
- Searches can be customized according to basic criteria like price, beds and baths, and then prioritized based on feature preferences such as a yard or hardwood floors.
- You can compare up to three homes side-by-side and room-by-room, allowing you to focus on the areas and features that you care about the most.
What’s So Great About RealScout?
For Buyers
- With instant alerts for properties that fit your exact criteria, there’s no time wasted on basic listing sites.
- Photos are organized by room, so the information that matters the most to you is always at your fingertips.
- Photo-centric RealScout gives you a better sense of what each home looks like, so you can request showings only for true contenders. That makes the search process less time-consuming!
For Sellers
- Keep current on the local market and homes comparable to yours.
- Gain an understanding of your home’s true value instead of relying on inaccurate estimates from other websites.
- Your PorchLight agent will receive reports identifying buyers who match your listing. They can then reach out to their agent to potentially set up a showing and nurture that lead for you.
For Everyone
- Agent communication is seamless, and you’ll always be in sync. If you adjust your preferences, your agent will be notified so that they can change settings, even reach back out to their network to potentially find more matches.
- By accessing current market data, buying or selling comes with no pricing surprises.
- RealScout is designed for both desktop and mobile viewing. Just download the iOS or Android app.
