Denver Real Estate Stats: December 2024

Following typical market patterns, the final month of 2024 was a slower one for Denver real estate. Compared to November, there were fewer new listings and fewer homes went under contract in December. Month-over-month, the median home price increased by less than a percentage point while days on market jumped from 44 to 55. 

Taking a closer look at detached, single-family properties, there were 1,320 new listings compared to 1,954 in November and 3,363 back in October. Pending sales fell by 15.5% and closings were down 2.45%. However, activity actually increased year-over-year with sales increasing by 22.18% and pending sales up by 15.26%, perhaps due to a slight dip in mortgage rates mid-month.

With less inventory coming in and more homes going under contract and being sold, Denver's median December home price of $639,700 increased by a healthy 4.87% compared to 2023. And that's with quite a bit of inventory left over at the close of the month—4,636 active listings—an increase of 32.27% year-over-year.

However, the backstock of homes continued to be absorbed. There were 6,262 properties still available at the close of November, so December showed a hefty drop. And this will likely be the number to watch in the coming months. If new listings remain low in early 2025 and active listings continue to dwindle, market activity could be swift come spring.  

For now, the pace remains slow and days on market climbed in December. Between higher mortgage rates, the holidays, and a lot of inventory to choose from, buyers are still taking their time to find the right home and the best deal. In December, average days on market increased from 44 to 55 month-over-month and by 19.57% versus 2023.  

As for attached properties, condos and townhomes, selling remains tough. Just 520 listings came on the market in December, down from 791 in November yet up by 3.79% year-over-year. Closed sales were up month-over-month and down compared to 2024, while across the board, days on market increased—crossing the two-month mark to 61 days.

The outcome was a median price of $394,000 compared to $420,000 the prior year and 2,252 properties still active at the close of the month. With fewer listings though, month-over-month inventory did decrease by 26.14% in this segment—yet still came in 53.62% higher compared to the prior year. 

Looking ahead, here's what Amanda Snitker Chair of the DMAR Market Trends Committee sees:

We are over two years into an environment with mortgage rates over six percent with no meaningful change on the horizon. Buyers and sellers have had to adjust to the market and in tracking mortgage applications and pending contracts with slight drops in the mortgage rates, we know that buyers are watching and waiting, and buyer demand remains cautiously high. Sellers, locked into the golden handcuffs of a historically low fixed-rate mortgage, are finding themselves unable or unwilling to postpone life changes. resulting in more inventory entering the market. While mortgage rates are not the only factor affecting market activity, they are the element that could bring about the most significant shift.

For now, steadfast buyers can shop around as well as enjoy negotiation power. And sellers can also take advantage of there being slightly less inventory to compete with. But the market remains unpredictable, especially with a new administration coming into the White House. Changes could affect the market either way, even if the fed drops interest rates, so a watch-and-wait strategy may not be your best approach.

Your best bet is to discuss your buying or selling goals with an experienced real estate agent. They can better assess the market and provide a smart approach, as well as negotiate for your best interests. A proven professional will have the insight, connections, and resources to help you achieve your real estate goals no matter what comes next.

Choose your real estate agent with care and make sure you have proven professional representation.

How to Navigate the Home Buying Process

If buying a home is one of your goals for 2025, you may be wondering where to start and what to expect. While an agent can guide you through each step, here's the basic process:  

1. Understand Your Finances: Start by connecting with a reputable lender to get pre-approved for a mortgage. Unlike pre-qualification, which is based on basic financial details, pre-approval involves a more thorough review of your finances, giving you a clear budget for house hunting. Ensure the pre-approved amount aligns with your complete monthly budget, as it may not consider all your expenses such as groceries and entertainment. 
2. Select a Real Estate Agent: Find an agent who understands your criteria, budget, and preferred location. At PorchLight, our agents have deep knowledge of local neighborhoods and can show you homes that fit your needs and budget. They may even find you a perfect home in areas you may not have considered.
3. Find Your Ideal Home: A PorchLight agent can set you up with RealScout home search results. This tool updates every 30 minutes from the MLS, sending instant notifications when homes matching your preferences become available. Then, explore listings, attend open houses, or schedule showings.
4. Make a Reasonable Offer: With your agent’s help, craft and submit a strong offer. Given today's market, discuss strategies with your PorchLight agent to put together an offer that is beneficial to you, yet amenable to the seller. While you can ask for concessions or a reduced price, being too aggressive can be a big turnoff.
5. Get Under Contract: Once your offer is accepted, both parties sign a contract outlining the purchase terms. You'll pay earnest money, and the home will be in escrow until closing.
6. Conduct Due Diligence: Between contract and closing, you'll need to arrange a home inspection and appraisal, choose insurance, and handle the necessary paperwork. Your agent will guide you through this process, including representing your best interests if issues arise and further negotiations are needed. 
7. Close on Your New Home: After securing your loan and completing all paperwork, the funds are transferred, and the keys are yours. Up until you sign papers, you need to avoid major financial changes to protect your loan approval. Lenders often run your credit again in the days prior to closing. Leaving a job, putting new appliances on a credit card, even paying off a credit card can all disrupt your credit score and raise red flags.