January Denver Housing Market 2024

Post President’s Day January Housing Market 2024 Update

greater metro denver single family detached adtive homes for sale comparing january 2024 to last year. the chart also shows all of last years data but for this article, understanding there were 3897 active homes last year but only 3114 this year we have fewer homes for sale.

Real estate is cyclical. The graph above shows that the most homes for sale are during warm months and the fewest at wintertime. Additionally, this chart from First American Title outlines that January Denver housing market update 2024 shows fewer homes Active this year versus last.

What Are Active Listings?

Active listings are homes listed for sale in the ReColorado Multiple Listing Service. This chart does not take into account homes listed by owners (FSBO) nor any inventory only listed in the IRES platform and not shared in ReColorado. There are two MLS systems operating in the region with some overlap.

Active Listings Decreased Year Over Year

The most important takeaway for you is the number of total active listings decreased year over year. Why? IMHO, this is still being driven by very high home mortgage interest rates. A good deal of owners took advantage of the lowest rates we have seen ever and either purchased or refinanced. It can be difficult to walk away from those lower rates even if you really want to make a housing change.

Planning For Lower Interest Rates

There is a great deal of chatter online and in the news that home mortgage interest rates will improve in 2024. As rates become lower, the thought is that more homes will come onto the market. Home buyers may be wise to act before rates improve. After all, you can always refinance your mortgage.

Keep in mind, during the height of the craziness back during the Covid pandemic, homes were entering bidding wars and routinely selling for tremendously over list price. Should rates dramatically decline, buyers could be faced with bidding wars once more. Why not avoid the bidding war and secure a home now with less competition?

More Denver Homes On Market In February

Historically, this just happens. Inventory will increase as it becomes warmer outdoors. It’s part of the Denver housing market. But the question will be, how much does inventory improve? I expect we will continue to see tight housing inventory relative to this January Denver market 2024 update.

Closed Transactions Decline In January Denver Market 2024

chart showing last years closed transaction volume of single family houses in Denver. The most closings occurred in June.  There is a single blue column representing closed January 2024 home sales to compare with last years numbers. the column is much shorter as there were fewer transactions versus a year ago

Pending Transactions Leap Even as Closed Transactions Stagnate

Not pictured, we saw month over month closed transactions decline by forty percent in the seven county Denver metro area covered by these charts. Those counties include: Elbert, Jefferson, Douglas, Arapahoe, Broomfield, Adams and Denver.

And while closed transactions fell year over year, they were up from 2023 (again, not pictured). This tells me the housing market is improving from last year. People need to move. The next generation are buying homes. We have a good economy and people are getting out of their parents’ basements. Colorado continues to be a location with net inbound relocation.

And if those pending transactions hold – you have loan approvals and inspections to work through – we could see stronger numbers this coming month outpace the January Denver housing data here.

Deeper Dive on Pending Denver Single Family Home Sales

Friends and clients are always asking about the market. Something I’ve noticed really changing are the number of better than full price offers in the metro area. The chart below really emphasizes the change. During the height of the Covid-19 pandemic well north of ninety percent of home sales were pending within seven days of listing.

That was incredibly quick. By contrast we are only seeing about one in five homes pending in the first seven days these days.

colorful chart outlining average and median days to contract as well as the likelihood of going under contract in seven or less days.

Denver Metro Home Sellers Need This Vital Information

Denver metro home sellers need to be aware it is not less common to see your house go under contract in just seven days. Dramatically so. That’s not to say it doesn’t happen, because clearly homes are still selling quickly. But the houses in January Denver housing stats that did go under contract quickly inevitably featured some combination of strong pricing, good updating and desirable condition.

More than ever, condition matters when it comes to successfully getting your home under contract in a brisk manner. And the statistics point out that homes that go under contract quickly are selling for the highest percentage of list price.

Thinking About Selling This Summer?

Now is the time to get your house ready to be on the market. If you want to close by June, you are really entering the housing market in March or April. I can share expert tips to help you get your home tip top for best showing condition this year.

Cash Transactions On The Rise

I heard about this from a family expert – my mom. She tells me cash transactions now account for 32% of all real estate deals out there. I’m going to have to fact check that. But, I did just take a class on cash financing from a mortgage lender in my marketplace. What I learned was fascinating. There are lenders now offering home buying clients the ability to pay cash in lieu of a mortgage for a new home.

Why would you want that? Well, there is an argument to be made that cash buyers have advantages over those using financing. When it comes to using a loan, lending rules require and appraisal. Even if your CMA was spot on, the lender still wants to double check the price is realistic. If the lender doesn’t like the price, they could screw up the transaction. Thus – owners with multiple offers might well prefer the safety of a cash offer.

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