April Market Report - Metro Denver
Last Month's Key Statistics
for Denver's Real estate Market
Attached & Detached Single Family Homes
The average sales price of $711,493 in March rose 4.3% from last month and rose 2% from last year.
- Active Listings: 9,846 up 9.6% from last month | up 0.8% from last year
- Homes Closed: 3,631 up 28.1% from last month | down 2.7% from last year
- Months of Housing Supply: 2.7 months
down 0.5 months from last month |
up 0.1 months from last year
Quick Stats:
- In March, 63.1% of sellers offered a concession, down 0.6 percent from February but up 3.8 percent year-over-year. With ongoing geopolitical uncertainty, concessions are likely to continue rising.
- The average number of active listings in March (1985-2025) is 13,105. The record high was set in 2006 with 27,309 listings, while the record low was set in 2021 with just 1,921 listings.
- Historically, active listings increase by an average of
11.3 percent from February to March. This year's smaller increase of
9.6
percent suggests slower growth in new listings.
Hi all!
The biggest story we've been impacted by during the month of March is the Iran War. We are in a global economy and everyone has been impacted in one way or another.
The Denver real estate market is no exception. Interest rates in February ended just slightly below 6% for the average 30-year fixed rate mortgage. They then jumped to a peak of 6.64% by mid-March and have retreated slightly to around 6.4%. That is quite the wild ride for such a short period of time. This volatility, combined with a month that typically brings a lot of home buying demand, has resulted in conflicting data.
One agent from the Denver Metro Area Realtors reported that "cumulative data may not yet reflect it, but March felt like a turning point." I respectfully disagree. I see some minor improvements in the data, but turning points are defined not by individual agent experiences, but by sustained data, which we currently lack.
For example in March, pending sales increased 30% month-over-month, but only increased 5% year-over-year. So while the short-term data may indicate a turning point with such an increase in demand, the long term data suggests only a minor uptick.
Affordability has been and will continue to be the biggest challenge for Denver's market. We appreciated too much and too fast, then got hit in the face with 6-7% interest rates. I recently heard one homeowner of two young children say "we would want to move into a bigger home, but with how expensive mortgage rates are, I'd rather go live in my garage!" -a sentiment many home owners can relate to, I'm sure!
In my professional opinion, the turning point will come when rates reach the mid-to-low 5s, and stay there. The pain will be lessened and we'll see pent up demand begin to reenter the market.
I could be wrong but I'm very interested to see how the rest of the Spring market unfolds.
Thanks for reading!
Best,
Florence Realty Co.
