Market Update | January 2024

The Denver real estate market experienced heightened activity in January, characterized by an increase in inventory and rising buyer interest. With 4,872 active listings at month end, the number of active listings is up 18% year over year. Over the course of the month, 3,280 new listings entered the market, a 15% increase as compared to January 2022. The surge in listings indicates an earlier start to the selling season, resulting in more options for buyers.

 

In mid-month, buyer activity for homes under $600K picked up significantly, and many new listings received multiple offers. Due to pent up demand and some reprieve in interest rates, this activity is on the rise. Mortgage rates fell from 7.8% to 6.7% in October, increasing buyers' purchasing power. January saw a 24% increase in mortgage purchase applications. As the Federal Reserve waits to see continued inflation progress, the Fed held rates steady at their January meeting and indicated a rate cut is not likely in March. Hopefully this summer we will see further declines in mortgage rates, which should result in an increase in demand. 

 

Compared to last year, our Close Price Median and Average were both up around 5%. As we forecast pricing through 2024, this is in line with what we are expecting.  Denver’s real estate market is expected to have a healthy year in 2024 - contact your Invalesco Advisor to see when you should buy or sell!