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March Metro Denver Market Review

March marked a pivotal moment for the Denver real estate market, ushering in spring with a boom in activity marked by industry developments and market dynamics. From February, March brought a 16.27% increase in new listings and ended with a 31.94% increase in pending sales, explaining the only moderate 6.13% bump in active inventory. Historically, active listings average an increase of 10.97% from February to March, this year’s 6.13% indicates that inventory is still a huge influence on the Denver market.

Market Activity and Inventory Growth

The Denver real estate market remained strong in March, witnessing a notable surge in new listings, which rose by 16.27% month-over-month. With median days on the market dropping 52.16%, active listings at month’s end only managed to tick up modestly month over month, but a quite impressive 29.52% year over year. Would-be buyers would certainly like to see a higher number here, but overall inventory is still slim but growing. The median close price also continued its upward trajectory to $595,000, an increase of 3.48%, reflecting a much more controlled seasonal increase than the dramatic surges we saw during the pandemic. 

Sales Performance and Inventory Trends

The notable increase in pending sales to 4,317 signals strong buyer interest and intent. That number is even 7.47% higher than this time in 2023. Closed sales experienced a modest bump month over month at 13.4% and a decline from last year of 13.37%. This is another indicator of a robust, but not nearly as red hot, market as we’ve seen in recent years. That being said, reflecting on the pending sales numbers, we expect to see a significant jump in this number next month. 

Market Outlook and Rate Trends

When we look ahead at the market, our greatest influence keeps returning to interest rates. Many projections last year expected us to see rates dropping by now. Economic indicators point towards a prolonged period of higher rates, but with a rate cut on the horizon. Buyers and sellers have had to adapt to this timeline. Many buyers are changing their search parameters to accommodate the cost of financing and many sellers are no longer offering financing concessions in light of increased competition. 

As Denver’s real estate market navigates legal settlements and economic uncertainties, stakeholders must adapt their strategies to capitalize on emerging opportunities and mitigate risks. The NAR Settlement will bring some logistical changes to the buying and selling process later this summer, but this news did not deter buyers and sellers this month. With inventory gradually increasing and buyer demand remaining robust, informed decision-making and strategic planning will be crucial for both buyers and sellers in navigating the evolving landscape of Denver’s real estate market.