End of Summer Market Assessment – August 2024 Denver Metro Market Update

As the summer concludes, the Denver Metro real estate market has shown distinctive trends that diverge from the norm, making this August an intriguing period for analysis. Let's delve into the data to understand the current market dynamics.

Key Metrics for August 2024:

• Active Listings: Reached 10,724 homes, marking a modest month-over-month increase of 1.32% and a substantial year-over-year increase of 56.37%, indicating a growing inventory that is reshaping the market.
• New Listings: Experienced a slight decrease of 0.76% from the previous month, yet have shown a year-over-year increase of 4.76%, suggesting a steady return of sellers despite fluctuating market conditions.
• Pending Sales: Increased by 3.74% month-over-month and 7.70% year-over-year, demonstrating continued buyer interest in the face of evolving market conditions.
• Closed Sales: Decreased by 7.55% month-over-month, reflecting the typical delay between sales agreement and closing, with expectations for a rebound in the coming months.

Focused Insights:

Attached Market: Has faced challenges with increased HOA fees and insurance premiums, making transactions more complex. Active listings in this segment saw a slight increase of 0.40% month-over-month, with a significant 70.92% increase year-over-year. The median days in MLS for attached homes jumped to 26 days, emphasizing a slower market that allows for more buyer deliberation.

Detached Market: Showed a robust increase in active listings by 50.85% compared to last year. The stability in median close prices suggests a continued demand in this segment. However, the slight decrease in new listings and closed sales indicates a cautious approach from both buyers and sellers.

Market Climate: The pace of the market has allowed buyers to be more selective, leading to a lack of urgency in making offers unless properties align closely with their preferences. The OMAR Market Trends Committee notes an increase in transactions falling out of contract, likely due to buyer hesitations, lending complications, and stringent seller conditions.

Looking Ahead: As we transition into fall, the potential adjustments in mortgage rates could further influence buyer and seller behaviors. This period might offer strategic opportunities for those prepared to navigate the complexities of a transitioning market.

Navigating Market Changes: In a market that’s less driven by urgency, aligning with a knowledgeable Realtor® can provide crucial advantages. Whether you are buying or selling, accurate market analysis and strategic positioning are key to achieving your real estate goals.

Reach Out for Expert Advice: If you are contemplating a move in the current market or need insights into specific segments, I'm here to assist. Together, we can craft a strategy that reflects your objectives and the latest market conditions.

This update is based on information provided by the Denver Metro Association of Realtors® for the period up to the end of August 2024.