Buyer Activity Increased in October...
Persistent high mortgage rates and soaring home prices continue to exert influence on the Denver metro housing market. As of the end of October, the national average 30-year mortgage rate surged to a 23-year high, as reported by Freddie Mac. Concurrently, the median price for homes in the Denver area experienced a modest 2% uptick, reaching $580,000. Consequently, home sales faced a decline for the second consecutive month, with a 6% drop in the number of home closings compared to the previous year. Year-to-date statistics reveal a significant 19% decrease in home sales across the 11-county metro area compared to the same period last year.
In October, sellers in the Denver Metro added 3,803 new listings to the market, marking a 1% decrease from the previous year. The number of new listings also saw a notable 17% decrease compared to the preceding month.
On a positive note, buyer activity demonstrated a boost in October. The number of listings transitioning to Pending status in the MLS exceeded last year's figures by 1% and outpaced the previous month by 5%. These listings were successfully taken off the market within a median timeframe of 17 days. While listings are lingering on the market slightly longer, this has contributed to a gradual increase in inventory levels. By the month's end, there were 7,538 actively available listings for sale.
Shifting focus to the rental market, October witnessed a temporary slowdown. Throughout the month, 294 properties were leased using REcolorado MLS, marking a 4% decrease from the previous month and a 1% decrease compared to the same period last year. Despite this, the median leased price for these properties remained relatively stable.
In terms of closings, October experienced a 12% decline compared to October 2022, and a 6% drop compared to the previous month, marking the second consecutive month of decline.
Home sellers in the Denver Metro introduced 3,803 fresh listings in October, representing a 1% decrease from the same period last year. The trend of decreasing new listings persisted for the second consecutive month, with a notable 17% decline from September.
Buyers demonstrated increased activity by finalizing contracts on 3,165 home listings throughout the month. The number of pending sales in October exceeded last year's figures by 1% and surpassed the previous month by 5%.
Examining different property types, the market inclusive of Multi-Family/Condo/Townhomes and Single-Family Residences experienced the highest number of sales in the $500-$600,000 price range. This price bracket also witnessed the highest influx of new listings in October. Homes in the $200-300,000 and $400-500,000 price ranges had the shortest time on the market.
Standing inventory, representing the number of listings available for sale at the end of the month, was 2% higher than the previous October, with 7,538 homes actively available for sale in the Denver Metro area. However, the gross sales volume in October recorded an 8.5% decline compared to the same month last year.