As the calendar turned to 2024, the Denver Metro housing market exhibited a surge in activity, painting a vibrant outlook for the real estate market. January witnessed an influx of 3,414 new home listings, marking a substantial 17% increase over the corresponding period last year. This influx eclipsed the number of listings recorded in December by nearly double, further expanding homebuyers' options. Encompassing these listings, there was a striking 167% year-over-year increase in the number of available homes, indicating an abundance of inventory compared to the previous year. This surge in inventory levels fostered a shift in sentiment among buyers, who responded enthusiastically to the improved accessibility. Consequently, the number of closed contracts surged by 6% and 44% compared to last year and last month, respectively, reflecting the renewed optimism in the market.
In a particularly noteworthy trend, the median home price experienced a substantial increase, fueled by a strong performance in the luxury market. Properties valued at $1M or more saw an impressive 20% surge in sales compared to January 2023, contributing to the overall price appreciation. However, buyers seeking affordable homes faced a lingering constraint, as listings priced below $500,000 experienced a more modest increase of 8%.
Despite the abundance of inventory, homes remained on the market for a median of 37 days. This duration highlighted a competitive environment where buyers and sellers engaged in strategic maneuvers. Sellers cautiously tested the market by setting initial list prices, while buyers exercised their leverage by negotiating price reductions. REcolorado data revealed that 48% of homes sold below the original list price in January, with an average reduction of $21,000.
Meanwhile, the Denver Metro rental market mirrored the robust activity observed in the home sales sector. January recorded a 11% increase in leased properties through REcolorado MLS compared to last year. Rental rates continued a steady upward trend, with the median monthly rent increasing by more than 2%. Notably, single-family homes garnered the highest median rental prices, attracting tenants seeking spacious living accommodations. Throughout the month, 384 new rental listings were added to REcolorado MLS, further underscoring the dynamic nature of the market. As January drew to a close, 599 active rental properties remained available, providing ample options for tenants to secure their desired homes.
