Market Update:
If you like roller coasters, then you would love the Denver real estate market right now! Home prices jumped 4.4% last month, which is a big win for homeowners. Let’s dive into if this will last.
The demand side is strong. Under contract homes are up 13.8% year over year, and median days on market dropped from 45 days to just 29. Buyers aren’t just looking; they’re pulling the trigger faster. An interesting element is that buyers seem to be shopping for the same homes. The houses that are selling fast are turnkey properties—move-in ready, with big-ticket updates already taken care of. Buyers are using their savings to get into a home and afford the mortgage. They don’t want to stretch their budgets even further to fund major renovations.
Supply is also rising. New listings are up 13.8% year over year and active listings at month’s end surged 11.3% from January to February. Historically, active listings only increase by 0.08% in that timeframe. This is the third-highest jump in active listings since 1985. If supply keeps climbing, it could start to put downward pressure on prices.
The wildcard? Mortgage purchase applications. Excluding the post-pandemic years of 2023 and 2024, they hit their lowest level since 1995. This a red flag for demand. If buyers start retreating due to affordability concerns, this recent appreciation could be short-lived.
Too Long, Didn’t Read:
Buyers: Competition is hot for move-in-ready homes, so act fast if you find one you love. If a house needs work, you may have more negotiating power.
Sellers: If your home is updated, now is a great time to list—buyers are prioritizing turnkey properties. If it needs love, consider making improvements before listing.
