It's Always Sunny in the Bahamas | Denver Housing Market Update - February 16, 2024

I saw a post today that said “it’s always sunny in the Bahamas.” That’s probably mostly true. It’s often sunny here too, isn’t it? That’s what we love about Colorado. Yesterday, for instance, was beautiful. A great day for a walk. A nice day to get some sunshine and vitamin D infusion on the skin. Today is kinda February-like though isn’t it?

I literally saw real estate for sale signs going in yards yesterday (a sign spring could be right around the corner) but a day like today reminds us that spring is officially still a month away. 

There are signs of inventory picking up though. 

The latest report from the Denver Metro Association of Realtors (DMAR) indicates that there are currently 4,871 attached and detached homes available in the entire Denver Metro area. This shows a significant increase (18.23%), in available properties, from January 2023—good news for homebuyers.

And while mortgage rates have been up and down this week, homebuyer sentiment appears to be on the rise while NAHB (National Association of HomeBuilders) metric for measuring their confidence also rose 4% to its highest level since August of last year. 

So how’s the market?

The era of multiple-offer madness has simmered down from the fever pitch we experienced a few years ago, and yet about 20% of homes sold still have sellers celebrating selling at a price over list price. Agents are still helping buyers find inventive ways to lower interest rates, such as the 3-2-1 or the 2-1 rate buydown, and other concessions (ask us how). 

Today’s homebuyers don’t seem deterred about rates trending back up a bit as they have been lately (yet), 

“[The] Consumer Sentiment indicator this morning rose to a 31-month high on a strong job market. Inflation is still on a downward trajectory.  Remember, never does anything move in a straight line. Experts are expecting a lower inflation report next month and a return to the mid-6s by spring, officially starting in 7 weeks, with a gradual decline to 6.2% by year-end.”

For those of you hoping for drastically lower rates to make your move, I recommend patience. The reality is no one knows when rates will move. There’s only what we know presently. 

Meanwhile, affordability remains in the same range we’ve been seeing in the Denver Metro area. The median sales price is $565,000 this month. Whereas last month, the median sales price was $15,000 lower, near $550,000, but $25,000 higher than January 2023, which was $539,250.

Bottom Line

In the meantime, if you or someone you know is considering a move in town, out of town, downtown, or even in or to another state, I can help (yes, in other states). Let’s schedule a conversation.