Easing Rates Give Denver Real Estate a Boost
On September 18th, the Fed lowered interest rates for the first time in over two years. While this move didn't directly lower mortgage rates, its influence did lead to a temporary drop. Mortgage rates hit a 19-month low, and much of the results were seen in Denver's real estate data for October.
While new listings of detached, single-family listings decreased month-over-month, likely due to properties going on the market right before or right after the Fed rate drop, that number increased by 27.92% year-over-year. Typically, fall and winter are the slow season for real estate, so this is an unusual uptick.
There were also 2,670 closed sales in October, an increase of 5.99% compared to September and 19.14% higher than in 2023. Again, these were likely for listings that went under contract in September—closings usually take place about 30 days after an offer is accepted.
As for October activity, pending sales came in at 2,748 which was slightly below September yet an increase of 32.95% year-over-year. It seems that the lower rates buyers saw the prior month and into October created momentum at a time when the market should be slowing for the season. Buyers and sellers may also have been motivated to close before the holidays arrived.
With more activity came an increase in the median home price. In October, the median was $650,000 compared to $629,950 in September. That's also a slight increase compared to the prior year. However, sellers received 98.61% of their asking price, and average days on market increased by 34.38% YoY, showing that buyers are still taking advantage of today's buyer-friendly market conditions.
Driving current conditions is inventory. There's more home inventory on the market now than we've seen in recent years. While the number of active listings decreased slightly month-over-month, October closed with 7,453 homes still available for sale, an increase of 40.92% compared to 2023.
As for attached properties, such as condos and townhomes, the market continues to experience challenges related to rising HOA dues caused by increased taxes and insurance premiums.
New listings were down month-over-month but increased year-over-year. Capturing some of that lower-rate magic, pending sales jumped by 6.27% compared to September but still lagged by 4.93% versus 2023. Closed sales were also down by 18.46% YoY.
The outcome was 3,487 active listings at the close of October, another big increase of 59.01% compared to 2023. The average time on market also came in at 46 days, which is 39.39% higher than the prior year.
In addition, the median price for attached properties was $401,000, down slightly from the prior month and 5.46% below the prior year. Again, there are bargains to be found and room to negotiate, but you should always work with an experienced real estate agent to better understand the financial standing of any HOA before making a decision.
Ultimately, Denver real estate remains a buyer-friendly environment, and that likely won't change until the backstock of home inventory decreases. That could be soon—many sellers hold off going on market during the winter and instead, wait for the spring when the market perks back up again.
So, the coming months are likely going to be a great time for determined buyers to shop around, take their pick from a substantial supply of homes, as well as negotiate prices and terms.
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. A proven professional will have the expertise, connections, and resources to help you achieve your real estate goals.
Choose your real estate agent with care and don't skip out on professional representation.
The Importance of Staging When Selling a Home
With so much inventory available in today’s market here in Denver, Boulder and beyond, selling your home successfully takes a smart strategy, one that includes key components such as great photos, eye-catching marketing materials, and attractive staging.
Yes, to sell quickly and for top dollar, you need the added power of professional home staging. It’s a proven way to attract buyers online and make the best impression during a walk-through.
Check out the statistics, then ask your PorchLight agent for details about our staging services!
Less Time on Market: In 2023, 48% of sellers’ agents stated that staging either slightly or greatly decreased a home’s time on market.
Sell For More: When staged, 44% of sellers’ agents reported that a home’s value increased by 1-20%. None saw a negative impact.
Staging Makes an Impact on Buyers
Among buyers’ agents, 58% of their clients found traditional, physical staging to be more and much more important to have. Here’s why:
- 81% Easier to Visualize as Future Home
- 40% More Willing to Walk Through After Viewing Online
- 34% Positive Impact on Home Value When Matches Buyer’s Taste
- 23% Able to Overlook Faults of the Home
Top Rooms Buyers Want to See Staged
- 47% Living Room
- 42% Master Bedroom
- 35% Kitchen
- 24% Dining Room
- 21% Yard/Outside Space
- 19% Bathroom
*Source: NAR, 2023 Profile of Home Staging
