Denver Metro Housing Market Heats Up in February

The 11-county Denver Metro housing market is stirring awake, with signs pointing to a potentially busy season ahead. While affordability remains a hurdle for many, a combination of factors is leading to cautious optimism for both buyers and sellers.

More Homes on the Market, Rising Seller Confidence
The biggest news? Inventory! After years of tight supply, the number of existing homes available for sale is showing signs of loosening. This is thanks, in part, to a surge in seller confidence. Encouraged by the possibility of moderating mortgage rates, coupled with strong prices, sellers are bringing their home listings to the market. February saw a 25% increase in new listings compared to last year, and this marks the second consecutive month with a significant jump.

Strong Demand Pushes Prices Up
According to Fannie Mae’s January 2024 Home Purchase Sentiment Index®, buyers are showing an openness to moving. Prospective buyers were active in February, executing 6% more contracts on homes than we saw last year at this time. Additionally, following an uptick in activity in December and January, this February saw year-over-year and month-over-month increases in home closings. Increasing demand pushed the median closed price to $575,000 – a 3% increase from last year.

Rental Market Snapshot
The rental market also saw some movement in February. The number of leased properties using REcolorado MLS increased by 16% compared to last year, with single-family homes commanding the highest median rent at $3,000 per month. Interestingly, the median leased price dipped slightly compared to February 2023.

What Does This Mean for You?
Whether you’re working with buyers, sellers, or renters, the Denver Metro market is in a state of transition. More homes on the market offer buyers more options, while sellers are likely to benefit from continued buyer interest. Renters may see some stabilization in pricing as inventory increases.

The coming months will be interesting to watch. If mortgage rates do indeed fall as predicted, we could see a surge in buyer activity and a more balanced market. However, affordability concerns are likely to persist, so careful planning is still crucial for anyone navigating the Denver Metro housing market.

February 2024 Market Stats

REcolorado videos and infographics depict year-over-year market statistics. To see month-to-month statistics, please read the Full Market Watch Report.