In the 11-county Denver Metro area, September brought about a typical seasonal slowdown in the residential real estate market, impacting both buyers and sellers. Here’s a breakdown of the key indicators:
- Closings Down 17%: The number of home closings in the Denver Metro area saw a decrease, down 17% from the previous month. This dip in closings is a usual characteristic of the summer market transitioning to fall.
- 25% Fewer Closings Compared to 2022: When compared to September 2022, there were even more pronounced changes. This year, there were 25% fewer closings, indicating a shift in the market dynamics over the past year as interest rates remain at higher levels.
- Stable Home Prices: Home prices; however, remained relatively stable, with the median closed price of a Denver Metro home increasing by less than 1% when compared to the previous month. On a year-over-year basis, September’s median closed prices were up just 1% compared to the same month last year, as demand leveled off.
- Fewer Newly Listed Homes: The number of newly listed homes in September decreased by 5% when compared to August. Additionally, compared to the same period last year, sellers brought 12% fewer homes to the market. This reduction in listings may impact choices for buyers and the overall competitiveness in the market.
- Buyer Activity Declines: Buyer activity slowed in September, with fewer contracts executed on homes as compared to August. The number of listings pending sale was down 8.5% compared to the previous month. The median number of days it took for a home to move to pending status increased by 5 days, suggesting that potential homebuyers are taking more time to make decisions.
Rental Market Follows Suit: The rental market in the Denver Metro area also experienced a seasonal slowdown. The number of properties leased using REcolorado MLS decreased by 11% compared to the previous month. However, it remained 14% higher than the same period last year. The median price per month for a leased property increased by 5% compared to the previous year, indicating the rental market’s relative strength despite the seasonal dip in activity.
As the Denver Metro real estate market adjusts to seasonal fluctuations, buyers and sellers should remain mindful of these changing dynamics. While the number of closings has decreased, the stability of pricing and strength in the rental market continue to be notable aspects of the local real estate landscape. The market’s responsiveness to economic factors and buyer behavior will likely continue to shape trends in the coming months.
Denver Metro Area Market Stats: September 2023
REcolorado videos and infographics depict year-over-year market statistics. To see month-to-month statistics for the Denver Metro area, please read the Full Market Watch Report.