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February Metro Denver Market Review

The market is blooming, even if spring hasn’t officially sprung here in Denver. Active listings are up 45.87% from last year to 5,511 homes. Pending listings, 3,514, are outpacing new, 4,243, but increased buyer activity this month will continue to put a crunch on inventory. Buyers and sellers should strategize for success. While some may attribute their fortunes to luck, savvy individuals recognize the importance of preparation and informed decision-making in this dynamic landscape.

Seller Strategies

Interest rates continue to be the strongest market influence, and despite their continued fluctuation, home prices have persisted and even increased by 2.05% in February. Interest rates remain in the mid to high 6s, and savvy sellers are jumping in the market to capitalize on the heightened spring demand. New listings were up 29% last month and reflect those motivated sellers. Sellers who were holding out for lower rates have seen the increased buyer activity and listed.  Successful sellers prioritize presentation and readiness, ensuring their homes stand out amidst growing inventory, leading to multiple offers and optimized profits. While the close-to-list price ratio has increased to 99.25%, it is still under 100%, indicating that buyers still have interest rates on the brain and are sensitive to increased home-buying costs. 

Buyer Tactics

Savvy buyers can use this uptick in inventory to their advantage by targeting homes that aren’t checking everyone’s boxes. While some engage in bidding wars for their dream homes, others adopt a broader search approach, exploring negotiation opportunities on price and terms upfront. In those bidding wars, we are seeing buyers closer together on price and differentiating themselves on terms. While it can be a risky approach for buyers, sellers like the certainty that appraisal gaps, inspection objection waivers, and of course, cash, can offer. Their number one priority is getting the home sold.

Market Dynamics and Outlook

Despite challenges posed by rising interest rates and affordability concerns, Denver’s real estate market continues to defy conventional economic principles. Strong demand and limited supply buoy home prices, maintaining Denver’s status as a robust investment destination. With strategic thinking and creativity, buyers can uncover opportunities even in a seemingly constrained market, leveraging Denver’s resilient housing market as a solid investment avenue.

As the spring season unfolds, Denver’s real estate landscape offers both challenges and opportunities for buyers and sellers. Individuals can navigate the market’s complexities through strategic planning, informed decision-making, and creative thinking to achieve their real estate goals. Whether buying or selling, a great agent can make all the difference in a market where thoughtful strategies are key.