October Metro Denver Market Review

In October, the Denver Metro real estate market highlighted a balancing act between buyer opportunity and seller resilience. Inventory levels continued to rise, creating a shift in pace that gives buyers more breathing room and negotiating power while sellers still have paths to strong offers with the right strategy. Although the cooler fall season typically marks a slowdown in activity, this October saw some surprising dynamics as buyers and sellers adapted to changing conditions.

Sales Activity and Price Trends

After September’s rate dip to a 19-month low of 6.1%, early October brought renewed buyer interest. However, stronger-than-expected economic data reversed the trend, pushing rates past the seven percent threshold by month’s end and causing many buyers to step back. This dual movement in interest rates helped shape October’s trends, influencing buyer activity and pricing strategies across the market. Closed sales rose by 2.35% to 3,443 homes, with sales volume up 7.4% from September. Even so, inventory remains 46.22% higher than last October, and average days on the market have increased 37.5% year-over-year. Meanwhile, median home prices are 3.7% higher than last October, reflecting steady appreciation amid ongoing economic and political uncertainty.

Attached Property Challenges

While we saw buyers and sellers across the market take a pause in October, the trends in attached properties are more pronounced. While closing for detached properties was up 19.14% from last October, attached properties were down 18.46%. With HOA dues, home insurance premiums, and property taxes all on the rise, potential condo and townhome buyers are taking their time when it comes to jumping into the market. These expenses, on top of the cost of borrowing money, can push homeownership out of reach. That being said, the buyers looking in the market have a lot of negotiating power. We have seen listings offer a year of paid HOA dues on top of other seller concessions. With attached property inventory up 59% from last October, buyers who don’t mind a neighbor might be able to capitalize.

Denver Market Setting a New Pace

The cost of borrowing isn’t just impacting attached properties; with mortgage rates over 7%, many buyers are taking their time making decisions. Therefore we are seeing different trends in the sales cycle. Year to date, there are 224% more listings than in 2021, though new listings are down 14.46%. Median days on the market have increased 62.5% from last year, shifting the strategy for both buyers and sellers. Sellers can anticipate more days on the market, making it crucial to price their property appropriately. Set the price too high, and buyers may pass it over; set it too low, and buyers may still ask for concessions.

What This Means for Buyers and Sellers 

For buyers, today’s slower pace presents an opportunity to explore more options, especially as inventory and average days on the market have increased significantly from last year. Sellers, meanwhile, can still capture strong offers, particularly if their property is priced competitively and presented well. Homes that meet current buyer demands—quality condition, updated features, and a strategic price—are still attracting attention even as market conditions lean toward a slower pace.

While winter traditionally marks a slower period for Denver real estate, there’s plenty to watch for in the months ahead. The elevated inventory and tempered buyer demand set up a unique environment as we head into 2025, and with the potential for mortgage rate shifts, buyers and sellers may find fresh opportunities.