May 2024 Denver Market Update

Prices soften as we enter our retraction phase earlier than anticipated this year. Recent trends indicate significant shifts, presenting both challenges and opportunities for buyers and sellers alike.

Market Overview:
May brought a substantial influx of new listings, bolstering inventory levels. Concurrently, buyer demand has slowed, pushing us into our retraction phase earlier than usual this year. Traditionally, we see price increases from January through June, but this year, the market peaked early due to the highest inventory levels seen in May since 2014 combined with a softer buyer pool, causing prices to decline.

In the coming months, we expect more inventory to enter the market, leading to continued price softening, with stabilization anticipated towards the end of the year. This period presents a prime opportunity for buyers to negotiate, with concessions becoming more common and sellers more willing to address inspection issues to close deals.

Sellers should be aware that the hyperactive spring market has ended, and prices are easing. To avoid extended market times and lower offers, initial asking prices should be more conservative. Homes in great locations, professionally cleaned, updated, and presented with high-quality photography will still attract strong interest, while others may take longer to sell. Now is the time to put your best foot forward.

Additionally, our May 2024 market reports for both Attached and Detached Residential properties include a new section on concessions. You can find this detailed information on pages 42-47, with a breakdown by zip code in the zip code index at the end of the reports. These images are highlighted with a red "new" starburst.

Single Family Detached May 2024
-Active inventory grew significantly from April to May, reaching levels not seen in many years. Sellers are increasingly aware that the best months to list are March through May.
- Pending transactions saw a slight decrease, while closed transactions experienced a notable increase.
- Months of inventory slightly declined, reflecting the previous month’s closed transactions.
- Average and median sold prices fell, indicating an early retraction phase.
- Many homes still sold for over asking price, with buyers often including concessions for rate buy-downs.
- Concessions are prevalent, with a significant portion of transactions reporting them, primarily for closing costs or rate buy-downs.
- Average days on market decreased, with many homes under contract within a week.

Single Family Attached May 2024
- Active inventory continued to rise, with new listings also increasing.
- Pending transactions saw a small decrease, while closed transactions rose.
- Months of inventory remained stable, reflecting previous months' contracts.
- Prices for attached homes are down compared to the previous month, with both average and median prices showing declines.
- A smaller percentage of units sold for over asking price, often including concessions for rate buy-downs.
- Concessions are common, with many transactions reporting them, mainly for closing costs or rate buy-downs.
- Average days on market decreased slightly, while median days increased.
- A notable percentage of homes were under contract within a week, typically receiving slightly over the original list price.

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