Denver Real Estate Market Update January 2024
🏡Michael Kozlowski Ranked as High as the #1 Individual Agent in the State of Colorado! Selling Homes for Above Asking Price in 2023 with Multiple Offers! www.team-koz.com 303-949-2755🏡
We enter this New Year of 2024 with excitement and anticipation for better times and markets ahead! The Denver Real Estate Market was a challenge in 2023, and here are the major stats from the close of the year as follows:
- Active Inventory is up 4.5% Year over Year, but it’s up 236% from two years ago.
- New Listings were at 49,560, which is down 17.7% from last year.
- Closed Properties were at 41,840, which is down 18% from last year.
- The Average Price for all Residential Homes was $679,710
- The Average Price for Single Family Detached homes was $764,977
- The Average Price for Attached homes ended the year at $477,985
The biggest surprise in these numbers is the big drop in numbers of homes sold, and yet the average prices in all three categories were only down less than 1%! Many Economists and experts predicted we would see a drop in prices from 5-20% The Denver market and economy have proven to be very resilient when we discuss prices, however rising interest rates, inflation and affordability pushed thousands of Buyers and Sellers to the sidelines and hit the pause button in 2023!
Let’s talk about 2024! Last year we shared our Top 10 Predictions for 2023, and actually predicted the market with above average accuracy with 8 of our 10 predictions coming mostly true! We won’t pretend to know the future and forecasting or predicting is usually a good guess at best, but here is the list of adjustments we feel are coming with confidence in 2024:
- Inflation will continue to slow down and put less pressure on Interest Rates.
- The Federal Reserve will lower interest rates 2-5 times in 2024.
- Mortgage Rates will vary from the low to high 6% range, with a chance of dipping into the 5%’s
- Buyers will return to the market, especially first-time buyers with reasonable ability to negotiate well on price and terms.
- The average Residential prices will adjust plus or minus 1-3%
- Sellers will finally return to the market, as pent-up demand and basic housing needs will motivate them to sell again regardless of Interest rates.
- The market will see a 20% increase in numbers of homes Sold and go above 50,000 resale homes sold again!
- Builders will increase inventory in 2024, as they have figured out how to sell homes with the right incentives and interest rates.
- The employment and labor markets will tighten, as many businesses will become more frugal and downsize their staff and space.
It’s an Election Year! Generally markets magically feel and look better when Politicians want our votes! (It’s also a Leap Year)
