Early-Morning Workout

As we saw in last month’s report, the Denver metro real estate market began to awaken from its annual 2023 holiday slumber. And then, pow — the market jumped out of bed and immediately went sprinting — not jogging, but sprinting. Home sales increased by 42.9% versus in January, and the number of new for-sale homes jumped 28.9%. Sellers are selling and buyers are buying. Will that continue for March?

Denver Metro Home Supply, Inventory

With that said, the market remains tight, meaning we still have an historically low supply of available homes and probably will for a long while.

I believe Months Supply of Inventory is a true yardstick of the real estate market. A "balanced" market has at least three months and up to six months of supply available. In other words, if, starting today, no sellers were to list their home for sale, then — according to the definition of a balanced market — all the for-sale homes would sell in three to six months.

However, that figure was only 1.4 months in January, which is a slight uptick from 1.3 months in January and one month in February 2023. 

Denver Metro Home Prices, Days on Market

The median price of sold homes increased from the previous month and year (1.5% and 5%, respectively). The median price for a home in the Denver metro area? $629,000. Unless something occurs that disrupts economic conditions, locally or nationally, that number should continue to rise, as real estate typically does.

The only red text in the graphic pertains to the average number of days on market before sellers receive an offer — 45 days, which is four days less than last month. The price range always dictates that number — more days for homes above $1 million and fewer days for homes less than $1 million, especially for homes under $500,000.  

Buyer Demand

Even though interest rates are bouncing between 6.5% and 7.5%, buyer interest showed positive signs, which highlights the market’s first-quarter momentum. Interestingly, despite the interest rates and the imbalance in the amount of inventory, the market still leans toward buyers. 

Above Asking Price

Over-asking-price transactions are occurring (not shown), which indicate a competitive market, yet they are happening with more balanced conditions compared to the peak pandemic years.

Holiday and School Breaks

As we enter the vibrant selling season — now through the end of June — keep in mind the timing nuances this month, especially with spring breaks and the Easter holiday weekend, which historically affect showings and market activity.

*Days on market can be skewed by how new construction homes are processed in the MLS.