City Lights Denver

Q1 2024 Denver Real Estate Market Update

Spring is upon us and the Denver Real Estate Market continues to be among the most active markets in the country! My quarterly update below highlights and summarizes some notable headlines and statistical information, I hope you find it to be beneficial. As always, I am so very appreciative and thankful for your continued business and referrals and I am always happy to be a resource in guiding you through the Denver market, so thank you for keeping me in mind!

Denver Sales Market Highlights

  • Inventory is growing; New listings increased ~29.1% month-over-month and ~22.6% year-over-year. Active listings at month’s end rose ~13.1% to 5,511 homes, an astonishing 45.8% gain year-over-year. Pending sales rose slightly by 12.7% month-over-month to 3,514. Buyers today have more negotiating power on price and terms.
  • The single-family housing market remains a hot sector; Sellers who have done their due diligence in preparing their homes for sale are receiving multiple offers, and in some cases, buyers are finding themselves in bidding wars
  • In the segment priced $1M and above, 689 new homes were listed in February, resulting in the largest month-over-month increase in inventory of any segment in the market; Attached homes priced $1M and above essentially doubled from January, up ~97%, while new detached homes were up ~59%
  • The condo market has shifted to a Buyer’s market driven by escalating HOA fees primarily attributed to rising insurance costs and mortgage interest rates
  • According to the U.S. Census Bureau, Colorado saw a 7% decline in the homeownership rate last year, the steepest drop among all states
  • At the beginning of February, County treasurers began mailing tax bills that reflect the 42% average increase in Colorado property values between January 2021 and June 30, 2022
  • February’s Mortgage Purchase Applications dropped 17% as rates increased from 6.6% to 7.13% 

Denver Rental Market Highlights

  • During the month of February, median rents stayed fairly consistent while median days on market decreased and listings on the market increased for both single and multi-family rentals
  • Multi-family rentals experienced a slight decrease in median rent but also saw a drop in days on market. Median rents were $1,495 in February versus $1,515 in January. Median rents for one-bedroom apartments decreased, but two and three-bedroom median rents increased. Days on market decreased by 9 days to 29 in February and multi-family listings were up approximately 5% versus January.
  • The overall rental market in the Denver HMA is soft, with an estimated 7.9% vacancy rate, up from 7.6% in April 2020
  • Downtown Denver’s Golden Triangle neighborhood continues to be a hotspot for development with multiple projects in various stages of development underway and there are five new projects on Bannock Street alone
  • New multi-family developments are offering 8-10 weeks of free rent to attract renters