The Denver real estate market continued to warm up in February despite the chilly weather. New listings and pending sales of detached homes increased month-over-month and year-over-year. However, closed sales decreased by 16.2% compared to 2024, and the number of active listings at the end of the month continued to climb.
While mortgage rates, and perhaps the country's political and economic uncertainty, may be causing buyer activity to slow, sellers seem to be returning to the market. Many are even shedding their "golden handcuffs" — being locked into their current homes because they secured rock-bottom rates during the Covid pandemic.
According to Amanda Snitker Chair of the DMAR Market Trends Committee, here's the bigger picture on seller activity:
New listings entering the market have been low over the past couple of years; homeowners locked into 30-year fixed-rate mortgages in the three percent range or lower have difficulty justifying a purchase that increases costs. As time has gone on, the conversation has evolved from when rates will decline to navigating a market with high interest rates for the foreseeable future. As time passes, our lives evolve and the low interest rate carries less weight when considering staying in a home that no longer meets our needs.
Looking closer at the detached, single-family housing segment, there were 3,362 new listings last month, an increase of 13.08% month-over-month and 12.25% year-over-year. Buyers responded with 2,649 homes going under contract in February compared to 2,149 in January, a healthy jump of 23.27%. That also came in 11.68% above pendings in 2024. So, even though spring has not arrived, activity for the month was robust.
However, closed sales were down by 16.20% year-over-year, and the month closed with 5,541 listings still active, an increase of 47.84% over the same period in 2024. That's February's new listings added to active listings from January (also over 5,000) minus last month's pending sales.
At this point, demand is just not keeping up with supply.
The result? Denver's median price for February was $645,575 an increase of just 1.48% month-over-month and 2.47% year-over-year. Price reductions are more common right now, as well as seller concessions which are not factored into the pricing data.
Keep in mind that these numbers reflect the bigger picture. Agents "in the field" are seeing stronger sales and even a few bidding wars in desirable neighborhoods and for homes that are updated, move-in ready, well-staged, and properly marketed. Competitively priced homes are also receiving more attention from buyers.
As for pace, things are starting to pick up a little with pre-spring buyers wanting to get the deal done before the official busy season for real estate. Month-over-month, average days on on market dropped from 60 to 54, though that's still 14.89% higher than last year. Even the most sought-after properties are taking about two weeks to go under contract according to local experts. Buyers are being cautious and selective.
Attached properties, such as condos and townhomes, posted similar numbers. New listings increased from 1,370 in January to 1,466 in February. That’s also 17.56% higher than the prior year. Pending sales were up by nearly 20% month-over-month and increased slightly year-over-year. Days on market came in at 60, two days below January but well over the 45 DoM for 2024.
The outcome was a median price of $400,000, up by just over 1% compared to both the prior month and year. And 3,013 properties remained active at the close of the month, up by 13.61% month-over-month and 70.90% year-over-year.
Even as spring arrives and the Denver real estate market officially enters the typical busy season, buyers will continue to have the ability to negotiate and shop around. It would take a big drop in mortgage rates or absorption of inventory to change the current trajectory of home prices and drive up competition. Right now, neither are in the forecast.
No matter what happens in the coming months, your first step is to discuss buying or selling goals with an experienced real estate agent. They can better educate you on the market and provide a smart strategy. A proven professional will have the skills, connections, and resources to help you achieve the best possible outcome. Choose your real estate agent with care and make sure you have proven, expert representation.
Home Inspections in Today's Market
When mortgage rates hit pandemic-driven lows, the real estate market took off. Homes were selling left and right, often over asking and often with a buyer agreeing to skip important steps like getting a professional home inspection.
Now that rates are up and the market has come back down to earth, inspections have again become integral to both buying and selling.
Before buyers commit to a mortgage these days, they are being more cautious. They are taking the time to search for the right property, and they are completing the due diligence needed to ensure they make a smart investment and don't end up stuck with a money pit. Results are also being used to negotiate a better deal, primarily if and when inspections reveal significant or costly defects.
On the flip side, sellers are proactively getting home inspections to help their listings stand out. They're addressing issues and making necessary repairs so that they can provide potential buyers with a clean bill of home health and avoid surprises that could derail the sale.
So, what should you expect from an inspection? According to the American Society of Home Inspectors (ASHI), a professional will visually assess these items:
- Foundation
- Walls, Floors & Ceilings
- Roof System
- Fireplace & Chimney
- Plumbing
- Electrical
- HVAC System
- Windows & Doors
- Exterior Siding & Paint
- Driveway & Walkway
- Deck or Patio
- Stairs & Railings
- Crawl Space
- Attic
- Basement
- Ventilation & Insulation
There are limitations, however. Inspectors may not move heavy furniture, climb a steep or snowy roof, or shimmy into a tight crawl space. Buyers and sellers also need to bring in a separate professional to evaluate a home for: mold, radon, asbestos, lead paint, sewer line issues, or a pest infestation.
While your real estate agent can help you line up a general inspection, you can always request additional services. Your agent should be able to connect you with the reputable professionals you need to put your mind at ease.
