Active inventory, new listings and Pending sales all decreased month-over-month. Average days on market increased significantly month-over-month, and closed sales decreased showing that the market continued to slow throughout December.
December’s vital statistics for all homes – detached single family (DSF) and attached single family (ASF) combined – included:
- The average price for homes was down 0.51% compared to the previous month and up 3.32% from December 2022.
- The average days in the MLS increased 21.05% from the prior month and are up 6.98% from a year ago. The median days in MLS increased from 22 days to 29 days month-over-month.
- Active listings at months-end were down 25.63% from November and up 4.50% from this time last year.
Reflecting on the past year in the Denver real estate market, challenges were faced, including a shortage of inventory and rising interest rates. Despite these obstacles, buyers and sellers managed to find common ground in a stabilizing market, bidding farewell to frenzied multiple-offer scenarios for sellers and allowing buyers more negotiation room. With mortgage rates on a decline, anticipation and curiosity surround the upcoming year in the Denver real estate landscape.
The expectation is that a continued decline in interest rates will lure more buyers into the market, addressing significant pent-up demand from the past two years. This surge in demand could potentially apply pressure on home prices, although it is unlikely to reach the levels seen in previous years. If demand rises, a subsequent increase in inventory is anticipated throughout the year, as sellers feel more at ease with improved financing options. Denver does not always follow national trends and predictions, often outperforming the rest of the country. Ultimately the trajectory of the year is dependent upon interest rates and consumer confidence.
This update is based on information provided by the Denver Metro Association of Realtors® for the period of December 1, 2023, through December 31, 2023, for the following counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.