Denver’s housing market is heating up as we move into spring, showing positive signs for both buyers and sellers. This renewed energy comes as homeowners increasingly decide to list their properties despite mortgage rates remaining above 6.5%, recognizing that life changes often outweigh the desire to hold onto lower interest rates from previous years.
The Market
The market’s responsiveness is evident in the numbers, with 4,828 new listings appearing in February and 3,516 homes going under contract. Pending sales showed remarkable growth—attached properties increased by 19.92% and detached homes by 23.27% compared to January figures. While total sales remain lower than last year by 17.29%, home values continue to demonstrate resilience.
The median closing price held steady at $599,990 for both property types, representing a 4.35% increase compared to the same period last year. This price stability, coupled with increased inventory, suggests a market finding a healthier balance.
Spring Time
Denver homes are selling more quickly as spring approaches, with the median days on market dropping significantly across all property types. Detached homes now spend a median of just 27 days on the market—a dramatic 37.21% decrease from January—while attached homes are selling within 42 days, representing a 12.5% reduction.
This accelerated pace indicates growing buyer confidence and urgency, likely influenced by the slight downward trend in mortgage rates since the beginning of the year that has motivated previously hesitant buyers to enter the market.
The quality and pricing of homes continues to be a critical factor in determining market performance. Properties that are appropriately priced and well-maintained are attracting substantial interest and quick sales, often receiving multiple offers in desirable neighborhoods. Meanwhile, overpriced listings typically face extended market times and eventual price adjustments. This divergence highlights the importance of realistic pricing strategies as inventory levels, while improving, remain below historical averages for the Denver metro area.
The increase in available housing inventory represents a significant shift for Denver’s market after years of severe shortages. This expanding selection is providing much-needed relief for buyers who previously faced extremely limited options and intense competition. While still not reaching pre-pandemic levels, the 11.17% monthly increase in new listings signals growing seller confidence and potentially more balanced negotiations between buyers and sellers in the coming months.
Looking ahead, real estate experts anticipate a robust spring season for Denver’s housing market. The combination of rising seller participation, motivated buyers adjusting to current interest rates, and faster sales suggests building momentum that could carry through the traditionally busy spring months. Market observers point to these early indicators as signs of a market that’s stabilizing after a period of adjustment.
