October was a month of heightened activity for the Denver Metro Area housing market, according to recent data from REcolorado Multiple Listing Service. In fact, market activity surpassed what we’ve seen over the last two years. More homes closed in October than during the same month in both 2023 and 2022. Additionally, there was a 6% increase from September’s closing numbers.
Record-High Median Prices Driven by Luxury Home Sales
The median closed price for single-family homes rose to an unprecedented $599,000, the highest on record for October. This rebound follows a price dip from August to September and shows a 4% increase month-over-month. Much of this growth came from the luxury market, as closings of homes priced between $1 million and $2 million surged by 34%. The month even saw five homes close at $5 million or more, including an impressive $8.3 million property in Old Cherry Hills.
More Listings Hit the Market, Boosting Buyer Options
Sellers kept up the pace, adding 4,644 new listings to the market in October. This influx represents a 22% increase over last October, but a seasonal 8% month-over-month decrease of 8%. Notably, over 8% of these new listings are in the $1 million to $2 million price range, offering prospective buyers a wider selection of luxury properties.
Buyer Activity and Contracts Continue Upward Trend
Buyer activity continued to gain traction, with contracts executed on 3,619 homes in October—23% more than the previous year and 3% higher than last month. Pending home sales, a leading indicator for future sales. The median time it took a listing to go from active to pending rose slightly to 27 days, a 10-day increase from October 2023 and just a one-day increase from September.
Supply Levels Reflect Increased Demand and Seasonal Patterns
The number of actively available listings in Denver Metro at the time of the October data pull was 44% higher than a year ago, yet showed a slight 3% decrease from September due to increased buyer demand and fewer new listings.
A Surge in the Rental Market
October also brought significant movement in Denver’s rental market. A total of 321 properties were leased through REcolorado’s MLS, marking a 9% increase over October 2023 and an 11% increase month-over-month. While the median leased price dipped slightly by 1% from last year, rental listings surged. Throughout the month, 411 new rental properties were listed, a 14% jump from last October and a 12% increase from September. At the end of the month, there were 771 rental listings actively available, 4% more than last month.
The Takeaway
The Denver Metro housing market continues to display resilience, with growing buyer interest, an influx of new listings, and record-breaking home prices, especially in the luxury sector. As we head into the final months of the year, the strong market dynamics indicate a robust foundation for future growth. Buyers, sellers, and renters alike are navigating an active and evolving market as Denver remains a prime real estate hub in Colorado.
