Regardless of the continued challenges of mortgage charges exceeding 6%, the metro Denver housing market continues exhibiting indicators of resilience, with elevated purchaser demand and rising house values.
In line with the December Denver Metro Affiliation of Realtors month-to-month report, lively listings fell by 26% from the earlier month. Nonetheless, they have been up 39% over final yr, indicating a shift as sellers dealing with life modifications enter the market.
The variety of lively listings stays traditionally low. The typical for December 1985-2023 was 11,966, whereas 6,888 properties have been accessible final month. The file excessive was 24,603 listings in 2007, whereas the file low was 1,477 in 2021.
Pending gross sales dropped 15.6% from November’s 2,913 to December’s 2,459 however remained 8% increased than final yr’s 2,268 listings.
In the meantime, the median sale worth remained secure at $580,000 from November to December; it elevated by 5.5% from December 2023 to $550,000.
“Consumers and sellers have needed to alter to the market, and in monitoring mortgage purposes and pending contracts with slight drops within the mortgage charges, we all know that consumers are watching and ready, and purchaser demand stays cautiously excessive,” stated Amanda Snitker, chair of the DMAR Market Traits Committee.
“Sellers, locked into the golden handcuffs of a traditionally low fixed-rate mortgage, are discovering themselves unable or unwilling to postpone life modifications, leading to extra stock getting into the market.”
Annual gross sales quantity improves
This yr’s gross sales quantity of $29.7 billion climbed 2% over 2023’s $28.6 billion.
“The housing market in 2024 mirrored most of the challenges seen in 2023, with elevated mortgage charges persevering with to form purchaser and vendor habits,” stated Steve Danyliw, a previous chair of the market tendencies committee.
“One of many standout developments of 2024 was the numerous improve in stock, pushed by an inflow of recent listings. The yr closed with 55,839 new listings, up 12.6% from 2023’s complete 49,489.”
In 2023, solely 0.25% of closed transactions concerned distressed properties, together with 33 quick gross sales. This proportion elevated barely to 0.35%, with 65 quick gross sales in 2024. These figures are considerably decrease than these in 2012 when 3,576 quick gross sales have been recorded.
2025 housing predictions
Trying forward, Danyliw anticipates related challenges this yr to 2024.
Consumers will proceed to face affordability constraints, whereas sellers should differentiate their properties in a aggressive market.
Mortgage charges will proceed to exert a dominant affect.
“Whereas consumers could profit from elevated stock and stronger negotiating leverage, affordability stays a major hurdle, with little expectation of significant charge reductions,” he stated.
“For sellers, heightened competitors will dampen worth development, necessitating strategic approaches to advertising and positioning their houses.”
Andrew Abrams, a member of the market tendencies committee, stated elevated stock provides sellers extra bargaining energy, however he anticipates 2025 gross sales will likely be just like 2024’s.
“Denver metro has a resilient financial system that helps high-income earners,” he stated. “Whereas 2024 proved to be a stronger market than 2023, I anticipate 2025 to carry that very same tempo.”
Michelle Schwinghammer urges sellers to carry their A-game.
She stated sellers who skimp on promotion or make their houses unappealing by overpricing, entry limits, or refusing to barter will hear a transparent ‘no thanks’ from a certified, motivated purchaser pool desirous to discover extra choices than in years previous.
The information and editorial staffs of The Denver Submit had no function on this put up’s preparation.
