Sellers put more homes on the market in January

Last month saw even more activity from sellers, with 90% more listings on the market than in December. The number of listings for homes priced over $1 million increased by nearly 173%. (Photo by Andy Cross/Denver Post)

Sellers in the Denver metropolitan area have bounced back from last month's slump, putting more new listings on the market and increasing their sales this month, according to the Denver Metropolitan Area Association of Realtors' monthly update. It set the stage for more home closings next month.

New listings, which have been subdued since interest rates began rising from historic lows in 2022, rose 90% from December to January to 3,280 listings, an increase of 14.7% year-on-year. However, it is common to see a significant increase in the number of listings from December to January, with 4,821 new listings in January 2019, a 110% increase over the month.

Last month, buyers closed on 2,051 homes and condos, down a quarter from December and down 6.3% from a year earlier. Given that it can take more than a month for a home to go from contract to closing, this decline mirrors what happened in November and December and reflects the enthusiasm buyers are showing in the new year. Do not mean.

The number of pending home sales, an indicator of future activity, rose 42.6% from the previous month to 3,294, and 6.5% from a year ago.

Increased demand pushed the median price of a single-family home to $625,000, 2.5% higher than December and 4.2% higher than the December 2023 median price of $599,900. Median prices for townhomes and condos sold have reversed. It fell 5.9% from the previous month to $395,000, and on a yearly basis, he was down 0.13%.

Available single-family property inventory decreased 4.8% month-over-month to 3,336 properties, but increased 15.3% year-over-year. Condo and townhome inventory increased 4.7% to 1,535 units in January, a 25% increase from the same month last year.

Single-family homes took a median of 37 days to go under contract, up from 29 days in December but on par with a year ago. The median time it took for condos and townhomes to go under contract was 34 days, compared to 31 days in December and 28 days last year.

As in 2023, all eyes are on interest rates after the Federal Reserve decided last week not to lower them.

“This year's spring shopping season is likely to be strong due to pent-up demand and favorable financing conditions. Although predictions are not consistent, if interest rates fall below 5% (for 30-year mortgages), inventory will become tight again. , we may see a scenario of increased competitiveness,” predicted Libby Levinson-Katz, chair of the DMAR Market Trends Committee. Comments included in the report.

Levinson-Katz said many buyers are “waiting and waiting” for interest rates to be lowered, which would mean lower monthly payments. But as the market heats up, bidding wars return and prices rise, she warns that trying to time the market could result in buyers paying more.

Sellers were especially aggressive when listing properties priced at $1 million or more. The number of properties in this category increased by 172.6% month-on-month, and compared to the previous year, it increased by nearly 40%. But buyers responded, with pending home sales increasing 46% month-over-month and 23.3% annually.