florencerealtyco

April Market Report - Metro Denver

Tue, 14 Apr 2026 16:39:03 GMT

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.

February Market Report - Metro Denver

Tue, 10 Feb 2026 16:57:12 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

The average sales price of $676,548 in January declined 0.02% from last month and declined 1.4% from last year.

Active Listings: 8,228 up 8.2% from last month | up 7% from last year
Homes Closed: 1,919 down 40.6% from last month | down 19.7% from last year
Months of Housing Supply: 4.3 months up 1.9 months from last month | up 1.1 months from last year

Quick Stats:

The average number of active listings for January (1985-2025) is 11,926.
The record-high January occurred in 2008 with 24,550 listings while the record-low was set in 2022 with just 1,184 listings.
Historically, active listings decline an average of 3.3 percent from December to January. This January's 8.2 percent increase reflects a strong influx of new listings.

"Oh the times they are a-changing."

Today, I make the argument that Bob Dylan's hot take is old news. At least in regards to Denver's real estate market, because our times HAVE changed. Here's what I wrote in February of 2020:

"Strange how a Coronavirus scare in China can affect real estate in Denver, but it does.

Out of fear of the global economy suffering from the virus, investors put their money in bonds, causing mortgage rates to drop lower and lower during the month of January. Buyers snatched up the new year's listings quickly, taking advantage of 3-year low interest rates.

We're still below 2 months of housing supply in Denver Metro. That fact, combined with low mortgage rates, means we should all expect buyers to continue to snatch up new listings quickly as we move into the spring."

And this was our market BEFORE the pandemic created a huge spike in demand with work-from-home mandates and freedom for knowledge workers to finally make the move to Denver that they had always dreamed of.

So let's compare February 2026 to February 2020. Today we have 67% MORE supply and 36% LESS demand. This results in a 250% increase in Housing Supply (the ratio of supply to demand). We should certainly talk (or sing) about change in the past tense.

Today's new reality is that the buyers are selective, not desperate. Successful sellers are patient, not greedy. And everyone needs good advice and proven processes to meet their goals.

And that's what we are here for! I'll leave you with our Mission Statement -one thing that has NOT changed since we founded Florence Realty Co. in 2017:

Buying or selling a home doesn’t have to be risky or stressful. Florence Realty Co. exists to provide expert advice and a proven process for our residential real estate clients. Home buyers and sellers deserve to make smart and stress-free real estate investments.

Best,

Florence Realty Co.

January Market Report - Metro Denver

Tue, 13 Jan 2026 17:22:31 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

The average sales price of $678,718 in December declined 3.6% from last month and declined 0.7% from last year.

Active Listings: 7,607 down 27.6% from last month | up 10.4% from last year
Homes Closed: 3,101 up 9.2% from last month | down 4.9% from last year
Months of Housing Supply: 2.5 months down 1.2 months from last month | up 0.4 months from last year

Quick Stats:

Average active listings for December are 11,839 (1985-2024).
The record-high December was 2007 with 24,603 listings, while the record-low was set in 2021 with just 1,477 listings.
Historically, the active listings decline an average of 18.4 percent from November to December. This year's decrease of 27.6 percent is steeper than the long-term seasonal norm but is consistent with the 10-year average decline of 26 percent.

The calm before the storm.

This is the how this time of year always seems to feel. Things are "slow" with the anticipation of the real estate winds picking up and a flurry of housing activity to ensue. Much like the storm that took Dorothy to Munchkinland.

However, last spring the real estate market never really brewed into its seasonal forecasted storm. Thus 2025 ended with pricing relatively flat for the year. In fact, pricing has been flat since 2022.

We ended the year with a 28 percent decline in active listings for the month of December. Many are speculating that these withdrawn or expired listings will all return to the market in the next 30 days. Supply will then almost certainly increase. The big question is if demand will follow suit. If demand stays calm, then buyers will enjoy more inventory to choose from.

So here's my advice for the new year:

Buyers -Expect favorable conditions this spring with increased supply giving you more options than you might have had since you started shopping. If you're open to new construction, I've seem some builders offering 3.9% financing for 30-year fixed mortgages. This could be a great way to get favorable pricing AND favorable financing.

Sellers -Competitive pricing from day one is critical to success. Gone are the days of aiming for the moon and landing amongst the stars. You are selling a property in a market that has been flat for three years. Realistic expectations are the key to success.

Personally, I wish you all a blessed 2026. I know many had incredible years last year, while others are excited that 2025 has finally come to an end. Either way, I hope that this year brings joy and blessings to you and your loved ones.

Best,

Zach Florence

Florence Realty Co. Owner | Broker

December Market Report - Metro Denver

Wed, 10 Dec 2025 16:32:15 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

The average sales price of $706,996 in November declined 3% from last month and rose 2.2% from last year.

Active Listings: 10,506 down 15.9% from last month | up 12.9% from last year
Homes Closed: 2,734 down 23.4% from last month | down 13.2% from last year
Months of Housing Supply: 3.8 months up 0.3 months from last month | up 0.8 months from last year

Quick Stats:

The average number of active listings for November (1985-2024) is 13,416.
The record high for November was 27,530 listings in 2006, while the record low was 2,248 in 2021.
Historically, active listings decline by an average of 13.2 percent from October to November. This year's active decrease of 15.9 percent may indicate slightly softer buyer demand.

And that's wrap! Here's your final market update for 2025.

Are we back to "normal?" Absurd bidding wars, waived contingencies, and double-digit appreciation has been replaced with reasonable negotiations, seller concessions to buyers for inspection items, and modest price gains. Nothing is wrong, broken, or falling apart. It is, in fact, quite normal.

And with normality comes seasonality. We're seeing very similar numbers now as we did in 2024, including the decrease of both supply and demand as we head into winter. It should be safe then to assume that we will see the seasonal increase in both supply and demand in the new year.

Mortgage rates keep bouncing around in the low 6s. They are never low enough to motivate buyers but also not high enough to keep them from buying at all. I do believe once rates move into the 5s and stay there, buyer motivation will increase.

So here's my advice for 2026:

Sellers- enough time has now passed from the glory days, and the new normal is here to stay for the foreseeable future. Sellers who find success these days have reasonable expectations, prepare their properties very well, and listen to the market after going active.

Buyers- If you’ve been waiting for better affordability, now could be your chance. Prices have been flat for a couple of years, and rates have retreated slightly with more low rates expected on the horizon. Buying now, knowing you can likely refinance in the next few years, could be a rewarding strategy.

Happy Holidays and all my best,

Zach Florence

Florence Realty Co. Owner | Broker

November Market Report - Metro Denver

Thu, 13 Nov 2025 16:13:08 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

The average sales price of $732,213 in October rose 6.2% from last month and rose 3.8% from last year.

Active Listings: 12,495 down 4.4% from last month | up 14.2% from last year
Homes Closed: 3,354 down 7% from last month | down 7.7% from last year
Months of Housing Supply: 3.7 months up 0.1 months from last month | up 0.7 months from last year

Mortgage News:

Mortgage rates have come down slightly in recent weeks, but they remain high enough to keep affordability tight. The impact of years of rising prices and elevated borrowing costs isn’t something that lower rates can quickly undo. Even with modest rate improvements, buyers continue to feel the squeeze as both home values and monthly payments remain elevated.

2025 continues to keep us on our toes! Or is it the exact opposite? On one hand, the market is drastically different from the "good 'ole days" of 2019-2021. However, it remains shockingly similar to the past couple of years. So are we now done with the "correction" or is this a new normal?

For example, from March 2020 to October 2025, the median sale price increased 34% percent. Most of that was from 2020-2022. We then experienced mostly flat pricing from 2022 until today. This all equates to an average annual appreciation rate of 7 percent over these past 5 years which is in line with 30-year historical annual appreciation rates. Sounds pretty normal when you look at it this way, right?

So when does the market recalibration stop? That's the burning question. Many buyers continue to wait for rates to come down while many sellers wait for the market to get "better." Rest assured, pricing has corrected by remaining relatively flat for a three year period. When mortgage rates land solidly in the 5% range, many predict that demand will increase. The biggest question is if supply will follow suit as well to keep the market balanced.

Until then, we remain a fairly balanced market, offering stability and predictability for both buyers and sellers. There's just enough supply to meet demand.

As always, don't hesitate to reach out for more specific data for the sub-markets that interest you the most!

Best,

Amanda

October Market Report - Metro Denver

Wed, 15 Oct 2025 21:59:06 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

The average sales price of $694,658 in September declined 3% from last month and rose 2.9% from last year.

Active Listings: 13,074 up 0.1% from last month | up 17.6% from last year
Homes Closed: 3,366 down 8.8% from last month | down 0.3% from last year
Months of Housing Supply: 3.9 months up 0.4 months from last month | up 0.6 months from last year

Quick Stats:

The average number of active listings for September (1985-2024) is 15,149 .
The highest number of September listings was 31,450 in 2006, and the lowest was 3,971 in 2021.
Historically, active listings increase 1% from August to September. This year's 1% increase aligns with normal seasonal growth.

As the saying goes in my childhood state of Texas: Happy Fall Y'all!

For this month's update, I'm going to highlight the difference in two of the largest sub-markets in Denver metro real estate, detached vs. attached. It's important because we often talk about the market on a macro level (all of the Denver metroplex) and the micro level (specific neighborhoods), but there is also this line in the sand that divides the entire market into two distinct sub-markets.

For example, single family detached homes have appreciated almost 3% year-over-year while attached homes (condos and townhomes) have depreciated almost 5% in the same time period. This is driven almost entirely by buyer demand (or the lack thereof) as demand for detached homes has increased 7% year-over-year contrasted to the demand for attached homes that has decreased by 17% over the past year.

All that to say with both markets combined, we're still a fairly neutral market with just under four months of housing supply. It's pretty boring when you look at the macro data, but it gets really interesting when looking at the parts that make up the whole.

As always, don't hesitate to reach out for more specific data for the sub-markets that interest you the most!

Best,

Florence Realty Co.

September Market Report - Metro Denver

Mon, 22 Sep 2025 15:57:15 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

The average sales price of $716,245 in August rose 2.9% from last month and rose 1.2% from last year.

Quick Stats:

The average number of active listings for August is 15,321 (1985-2024).
The record-high for August was set in 2006 with 31,664 listings while the record-low was set in 2021 with 3,582 listings.
Historically, active listings decrease by an average of 5.6 percent from June to July. However, this July saw a slight decrease of 1.2 percent from July to August. A decrease of 6.7 percent this August represents a steeper-than-average decline -about six times the typical July-to-August drop ( 5.5 percentage points larger than the norm).

Hi Everyone!

This month's takeaway is pretty straightforward. The real estate market keeps moving forward with relative stagnancy. Prices remain flat year-over-year. Supply has increased 10% from this time last year while demand remains almost exactly the same.

Refinance demand has been picking up with average 30-year rates now holding in the mid to low 6s. I know some buyers were able to get rates in the high 5s recently! Yes, the Fed Fund Rate was lowered by 0.25%, but mortgage rates had already dropped in advance of the Fed rate cut for the same economic reasons the Fed lowered their rate. In short, if the downward trend continues, I anticipate buyers will want to get off the fence if their purchase becomes a little more affordable.

I'll leave you with a fascinating statistic from last month: only 1% of the homes closed had a price reduction while on the market. Wow! This highlights the importance for sellers to be realistic in their pricing strategies as over-listing a property can negatively impact your success and ROI in a significant way.

Every neighborhood in Denver metro has its nuances, so please don't hesitate to reach out with your specific needs.

Best,

Florence Realty Co. Team

August Market Report - Metro Denver

Mon, 18 Aug 2025 22:20:27 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

The average sales price of $699,915 in July declined 5.6% from last month and declined 1% from last year.

Quick Stats:

The average number of active listings for July is 15,379 (1985-2024).
The record-high for July was set in 2006 with 31,989 listings while the record-low was set in 2021 with 4,056 listings.
Historically, active listings increase by an average of 5.6 percent from June to July. However, this July saw a slight decrease of 0.1 percent, suggesting the seasonal peak in inventory may already be behind us.

Hi Everyone! Hope you all are enjoying your summer here in Denver. The temperatures are hot, but the market could best be described as lukewarm: neither hot, nor cold. This is evidenced by relatively flat prices year-over-year.

However, as mentioned before, there are many sub-markets within the broader Denver Metroplex. Some price points, locations, and property types are performing well, while others are struggling. As a whole, the good and bad are balancing out at the moment. It might feel like a buyer's market to some, but I believe that's simply because we're no longer a seller's market -we're more of neutral market overall.

The biggest news so far in August is that interest rates have reached 10-month lows. The average 30 year fixed-rate mortgage is in the mid-6s while most buyers today could find rates in the low-6s. This will become even better news for buyers if the rates can hold or continue their multi-week downward trend. If they keep going down and reach the 5s, then I anticipate an increase in demand which will in turn keep prices holding strong or send them higher.

As always, please reach out for data for your specific needs!

July Market Report - Metro Denver

Mon, 14 Jul 2025 21:12:12 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

The average sales price of $743,572 in June rose 3.4% from last month and rose 3.6% from last year.

Quick Stats:

The average number of active listings for June between 1985 and 2024 is 15,125 .
The record-high June was in 2006 with 31,900 listings and the record-low was set in 2021 with 3,122 listings.
Historically, active listings increase by an average of 12.3 percent from May to June. This June's increase of 3.0 percent may signal a potential cooling in inventory levels.

Hi Everyone! We're at the halfway point of the year and the reality of the market is currently different from what many had hoped. Interest rates remain in the high 6s and low 7s and prices have flattened as a whole. It is nuanced as some sub-markets are appreciating while others are depreciating.

Even though inventory is up across all price points, buyers continually face the same problem: affordability. Monthly payments are expensive with the combination of high purchase prices and high interest rates. Prices and interest rates have remained steady all year, leaving buyers paying a premium to purchase a new home.

Thus buyer behavior throughout the year has been timid. Buyers are more calculated, concerned, and even anxious at the thought of spending so much money on a house. Most buyers who have successfully purchased a property this year have life circumstances that are the motivating factor to go ahead and move despite the constraint on their monthly payment.

The second half of this year will be fascinating. Will enough sidelined buyers from the past three years of high interest rates finally hit a tipping point? Will they decide the pain of their current living situation is greater than the pain of high interest rates? Only time will tell. I can see both scenarios where some buyers make a move this fall, while others continue to hold out hope that 2026 will deliver more affordability. Although if interest rates come down significantly, expect prices to start to climb yet again.

Thanks for reading! Please don't hesitate to reach out for data or advice for your specific needs.

Best,

Florence Realty Co.

June Market Report - Metro Denver

Mon, 09 Jun 2025 20:44:39 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

The average sales price of $722,101 in May rose 0.2% from last month and rose 0.7% from last year.

Quick Stats:

The average number of active listings for May between 1985 and 2024 is 14,510 .
The record-high May was in 2006 with 30,457 listings and the record-low was set in 2021 with 2,075 listings.
The historical average increase in active listings from April to May is 8.9 percent. An increase of 13.7 percent this May represents a healthy increase from our seasonal observation.

Happy summer everyone!

The biggest story is the continued slow and steady increase in active listings. Listings are increasing while demand remains flat. This leaves the Denver market with the largest amount of active listings since 2011 -a whopping 7x increase in the last four years. I believe the only way to stop this trend is for demand to increase and buyers to start taking listings off the market at a faster pace. That likely won't happen until we see a significant decrease in mortgage rates to motivate buyers who are on the fence.

Despite the continued increase in listings, pricing is holding steady with year-over-year appreciation essentially flat. This is actually quite remarkable and shows the resilience and strength of the Denver market.

Keep in mind that there are many different sub markets within the larger market. Detached homes are performing slightly better than attached. And homes under $1.5M are doing better than those in the luxury market.

As always, please reach out for more detailed stats for your specific needs!

Best,

Zach Florence

Florence Realty Co. | Owner | Broker

May Market Report - Metro Denver

Tue, 20 May 2025 17:46:48 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $722,790 IN APRIL ROSE 3.6 % FROM LAST MONTH AND DECLINED 0.7% FROM LAST YEAR.

Quick Stats:

The average number of active listings for April is 13,871 (1985-2024).
The record-high for April was in 2006 with 29,045 listings, while the record-low was set in 2021 with 2,594 listings.
The historic seasonal increase in active listings from March to April is 11 percent. An increase of 22.5 percent this April represents a healthy increase relative to historical observations.

Here is the latest market update from Zach Florence, Owner/Broker at Florence Realty Co. Hi Everyone!

I've heard recently from many of you that you enjoy getting these reports. So first off, a big THANK YOU to all who take the time to read these. I take great care to make sure all my people are well-informed with accurate and pertinent data. Very grateful to be able to provide this service for you!

Despite uncertainty surrounding tariffs and recession, Denver's average and median prices increased during the month of April. Our annual appreciation remains fairly flat for Denver metro as a whole. Overall, the market is not as bad as the sentiment surrounding it. One of my past clients, who now lives out of state, asked me recently how Denver real estate is surviving the "turbulence." I simply responded, we're holding steady.

However, not all sub markets within Denver metro are doing the same. Some neighborhoods are really strong, while others are struggling. It's a bit of mixed bag, unlike a few years ago when everything everywhere was up and to the right.

So in conclusion, I'd highly encourage you to reach out to me for your specific interests. I provide neighborhood-specific reports for my past clients, and I'm happy to provide the same custom reports for any of you who may have specific questions about the market that is of most interest to you.

Thanks again for reading!

April Market Report - Metro Denver

Mon, 14 Apr 2025 15:02:36 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $698,053 IN MARCH DECLINED 0.8 % FROM LAST MONTH AND DECLINED 0.3% FROM LAST YEAR.

Quick Stats:

The average number of active listings for March is 13,188 (1985-2024).
The record-high for March was in 2006 with 27,309 listings, while the record-low was set in 2021 with 1,921 listings.
The historical average increase in active listings from February to March is 10.9 percent. An increase of 14.2 percent this March represents a higher increase relative to the average historical observation.

Things are getting interesting! Primarily, home values retreated marginally during the month of March, which is historically a time when home values rise as buyers compete for hot spring listings and bidding wars ensue.

Looking back the end of March 2021, Denver set a record low for active listings at only 1,921 listings. Compare that to March 2025, which just ended with 9,764 active listings, a 5x increase over the past four years.

Demand also increased, as expected for this time of year. Thus our months of inventory continues to hover around three months, a relatively healthy number that may give a slight advantage to sellers.

However, for this month's update, I'd like to highlight where the market has been over the past five years. March of 2020 was unforgettable for all of us, and the pandemic put fuel on the already hot Denver real estate fire. The combination of work-from-home mandates and record low interest rates drove our median home prices up a whopping 39% for the two years following March of 2020.

The brakes hit quickly in 2022 when interest rates spiked from 3% to 7%. Today, median home values have depreciated 4% from their peak three years ago.

What's most fascinating is that the average annual appreciation over the past five years is now at 7%. This is a significant number as it aligns with long-term local and national averages. In short, the market exploded and then retreated and is now back in line with long-term trends.

Lastly, with all the uncertainty around us today, please don't hesitate to reach out if you have specific questions regarding your specific needs.

Thanks for reading!

February Market Report - Metro Denver

Mon, 10 Feb 2025 18:41:09 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $687,539 IN JANUARY ROSE 0.6 % FROM LAST MONTH AND ROSE 5% FROM LAST YEAR.

Quick Stats:

The average number of active listings for January is 12,032 (1985-2024).
The record-high for January was set in 2008 with 24,550 listings, while the record-low was set in 2022 with 1,184 listings.
Historically, active listings decline from December to January by an average of 3.9 percent. An increase of 11.6 percent this January reflects the strong increase in new listings and a record-high percentage change.

“Skate to where the puck is going to be, not where it has been.”

This famous Wayne Gretzky quote is going to be the focus of this market update. I'm not going to reference where we've been, but highlight some key statistics that could give insight to where we're going in 2025.

Denver metro is now up to 3.4 months of housing supply! This is because active listings are up 58% year-over-year. This represents a significant jump, and ultimately is a result of buyers not buying up the existing and newly-listed inventory.

Detached homes are performing much better than attached homes. Detached homes under $1M have 3 or less months of inventory, while all attached price points have at least 4.5 months of inventory, including the $1M-$1.5M price point that has a whopping 19 months of inventory!

So, at present, 2025 does not look promising for attached units, while detached homes will do better based on today's ratios.

Keep in mind that we are still early in the year. February is a critical month to see how many buyers who've been shopping might snatch up some inventory at better pricing. Also keep in mind that some neighborhoods are performing much better than others.

As always, don't hesitate to reach out for more specific data for your specific needs!

Best,

The Florence Realty Team.

January Market Report - Metro Denver

Mon, 13 Jan 2025 19:45:47 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $687,672 IN DECEMBER DECLINED 0.2 % FROM LAST MONTH AND ROSE 4.8% FROM LAST YEAR.

Quick Stats:

The average number of active listings for December is 11,966 (1985-2023).
The record-high for December was set in 2007 with 24,603 listings, while the record-low was set in 2021 with 1,477 listings.
Historically, active listings drop by an average of 17.9 percent from November to December. This year's decrease of 26 percent exceeds the seasonal norm but aligns with the 10-year average of 25.4 percent.

Happy 2025!

I hope you all had a great holiday season and are getting back to your normal life routines!

One of the big stories as we review 2024 is how much better detached properties performed over attached properties. While detached properties appreciated during 2024, attached properties lost value. An increase in insurance costs and maintenance budgets have lead to a 37 percent increase in HOA dues since 2020. This additional cost on condo owners has certainly lead to the depreciation in value in condominiums in 2024.

In other news, we now have established two full years of a high-interest rate market. Many had hopes that rates would come down in 2024, and while they took a brief dip, we ended with rates back where they started the year in the high 6s. Showings were up year-over-year in December, which indicates buyers are beginning to re-enter the market despite the higher rates as life changes are increasing the desire to buy, even with higher rates.

But even with the high-interest-rate market we experienced yet again in 2024, Denver showed just how strong its real estate market is with a 5% annual appreciation rate throughout 2024. Can you imagine how much appreciation will occur when rates finally come down?

Sellers, remember that timing is critical. Many buyers are about to start shopping in the new year. Just how motivated they are is yet to be seen, but expect demand (and your competition) to increase until we get to the end of spring. Our peak selling season is now through May, not summer.

Buyers, there are still not a lot of options out there, depending on your price point. Be really clear on your priorities. There is no perfect home, so remember that if a home is meeting 85% of your priorities, it's worth considering. If you're considering a condo, now could be a great time to buy after a year of condo price declines. If you're considering a detached home, be prepared for even more appreciation this year, especially if rates come down.

Thanks for reading! And please let me know if you need any additional detailed statistics for your particular needs.

Wishing you all the best in 2025!

Zach

December Market Report - Metro Denver

Tue, 10 Dec 2024 21:20:08 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $693,861 IN NOVEMBER DECLINED 1.8 % FROM LAST MONTH AND ROSE 5% FROM LAST YEAR.

Quick Stats:

Average active listings for November is 13,521 (1985-2023).
The record-high for November was set in 2006 with 27,530 listings, while the record-low was set in 2021 with 2,248 listings.
Historically, active listings drop by an average of 12.7 percent from October to November. This year's 15 percent decrease suggests slightly slower buyer demand.

Happy year end, everyone!

No real surprises as we wrap this year. The real estate market is behaving as expected. Supply and demand both decreased during the month of November, leaving us with three months of housing supply, which is still technically a "Seller's Market." However, this is the largest amount of housing supply that Denver has had throughout my 11 year career. Thus, 50% of the homes sold in November had a price reduction prior to going under contract.

Interest rates made it back to 7% in November and currently are in the high 6s. I believe we won't see a significant increase in demand until rates hit and hold in the 5-6% range. However when (not if) that day comes, expect prices to increase at a larger annual appreciation rate than the 3-5% we currently have year-over-year.

In short, if you're in the market to buy, now is when you'll historically find your best pricing. Our annual appreciation is almost guaranteed to begin again in January/February as many buyers are waiting until then to begin their home search.

Sellers, continue to have realistic expectations and make sure you are getting accurate data for your particular micro-market. Staging and proper market preparation is critical now more than ever for a successful sale.

And as always, don't hesitate to reach out for more detailed information for your specific needs.

Happy holidays, happy New Year, and see you in 2025!

Best,

Florence Realty Co.

November Market Report - Metro Denver

Tue, 12 Nov 2024 15:35:39 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $708,072 IN OCTOBER ROSE 4.9 % FROM LAST MONTH AND ROSE 3.7% FROM LAST YEAR.

Quick Stats:

Average active listings for September is 14,478 (1985-2024).
The record-high for October was set in 2006 with 29,722 listings, while the record-low was set in 2021 with 3,376 listings.
This year's drop in active listings from September to October is smaller than the historical average for this period.

During the month of October, supply dipped slightly and demand increased slightly. This resulted in our months of housing supply (the ratio of supply & demand) to finally come down after a few months of increase. This is significant in that it "stops the bleeding" as it keeps our market more balanced. This is evidenced by the fact that both median and average pricing were up during the month of October (4.3% and 4.9% respectively). And it brings our annual appreciation to a very middle-of-the-road 3.7%.

The presidency and the Senate races have both gone red. If Republicans also win the house majority, then many economists predict mortgage rates will continue to rise in the short-term. We're currently in the low 7s for a 30-year fixed mortgage.

Presidential election years bring so much uncertainty and I anticipate many buyers will begin to make moves, especially beginning in the new year. However, supply and demand will almost certainly decline over the next 60 days.

Sellers -prepare and price accordingly if you're listing before the new year. And listen closely to the market in the new year as many other sellers are holding out to list until January/February.

Buyers -if you want the best pricing of the year, consider doing some holiday shopping. You'll likely find the best pricing with less supply and higher rates keeping your competition at bay.

As always, don't hesitate to reach out for any more detailed statistic particular to your needs!

Best,

Florence Realty Co.

October Market Report - Metro Denver

Thu, 17 Oct 2024 15:31:58 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $672,600 IN SEPTEMBER DECLINED 5 % FROM LAST MONTH AND DECLINED 2.5% FROM LAST YEAR.

Quick Stats:

Average active listings for September is 15,253 (1985-2021).
The record-high for September was set in 2006 with 31,450 listings, while the record-low was set in 2021 with 3,971 listings.
Historically, active listings increase by an average of 0.7% from August to September . This year's 3.7% rise indicates strong late-season growth in inventory.

Happy fall y'all!

For those of you in the market to buy and hoping to see prices come down, your wish has come true (sorry homeowners!). During the month of September, the average home price in Denver metro decreased by a whopping 5%! And this is during the month when the Fed finally lowered their rate by 50 basis points. Mortgage rates took a dip prior to the Fed's rate cut, but actually have been rising ever since the rate cut for various economic reasons.

Also likely affecting the lack of demand is the upcoming presidential election. Election years are typical for sidelining buyers as there is so much economic uncertainty. Thus, I expect there to be even more price reductions for the next 30 days in Denver. Then it's TBD how the market will react post-election.

Also of significant note, we now have 3.6 months of housing supply. This is the highest it has been during my eleven year career. This almost guarantees pricing to come down in the next 30 days as as supply currently outweighs demand.

Buyers- if you've been waiting for good pricing, I'm not sure there's a much better time than now after a 5% decrease in values. There are many listings that have been on the market for a while and sellers are more open to taking way less than list price than ever before. Rates are still extremely likely to come down in 2025 and 2026. Smart buyers know they will refinance at a better rate within the next two years.

Sellers- have realistic expectations and make sure you're well-educated on your specific neighborhood. Prepare your property well and price reasonably. And have a plan B in place if you have to list this fall.

As always, don't hesitate to reach out for more specific information for your specific needs!

Best,

Florence Realty Co.

September Market Report - Metro Denver

amanda@florencerealtyco.com (Amanda Florence ) — Mon, 23 Sep 2024 19:16:54 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $706,206 IN AUGUST DECLINED 0.1 % FROM LAST MONTH AND ROSE 2.3% FROM LAST YEAR.

Quick Stats:

Average active listings for May is 15,439 (1985-2023).
The record-high for August was set in 2006 with 31,664 listings, while the record-low was set in 2021 with 3,582 listings.
Historically, active listings typically decrease by 1.3% percent from July to August . This August's decrease of 1.3% aligns closely with the historical trend.

The biggest real estate news from the month of August wasn't market data or interest rates, but rather we as an industry experienced new rules implemented as a result of the recent NAR settlement. The two biggest rules that are now in place are:

1. Buyers must have a signed Buyer's Agreement executed prior to touring homes with their agent.
2. Offers of compensation to a Buyer's Agent are no longer listed in the MLS.

I've had many intentional conversations with colleagues, clients, and general consumers alike. There is a lot of confusion in the public as to what all these changes mean, and it will certainly take some time for the industry to adjust to "normal practices" over the next months and even years. For now, here are a couple of points of clarity:

1. Commissions for both buyers and sellers have always been negotiable and will continue to be.
2. Offers of compensation to buyer's agents can still be made.

I've also spent many hours reading articles from the advocacy group that brought the lawsuit which brought about these changes. I believe there will be continued reform in the industry and there are many complex implications from these new rules. But here are two items I am certain of:

1. Florence Realty Co. will continue to provide fabled service for fair fees! This has been and will always be our aim.
2. Sellers benefit from working with buyers who are receiving advice from a qualified agent. Obviously that comes at a cost to sellers, but they do receive a benefit from this cost in that their buyer is likely receiving sound advice that will help keep the transaction moving forward toward a successful closing. This has proven true for many of my sellers in recent transactions this year.

As far as August's data goes, the market is following many historical norms and nothing is on one extreme or another. Many are keeping a close eye on interest rates as there are expectations of a drop soon. If/when that comes, expect to see a spike in demand.

I'll be continuing to discuss industry changes one-on-one. If you have questions or would like to have a conversation, I'd love that as well! Just reach out!

June Market Report - Metro Denver

Mon, 10 Jun 2024 19:27:29 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $720,7109 IN MAY DECLINED 0.7 % FROM LAST MONTH AND ROSE 3.3% FROM LAST YEAR.

Quick Stats:

Average active listings for May is 14,895 (1985-2023).
The record-high for May was set in 2006 with 30,457 listings, while the record-low was set in 2021 with 2,075 listings.
The historical average increase in active listings from April to May is 7.5% . This May saw a new record with a 31% increase, surpassing the previous record of 26.8% in 2019.

I had expectations for this most recent market report, and the numbers almost exactly matched what I anticipated. The biggest news is a record-breaking 31% increase in active listings since last month. This is a 75% increase since last year and a whopping 150% increase since May of 2022. Many of my sellers experienced more competition than expected last month. This increase also brings our months of housing supply over 2 months for the first time in a long while. Demand remained similar to last year, but more sellers are deciding it is time to go on the market for a variety of reasons.

This is generally bad news for sellers as they will likely be facing more competition, depending on their price point and neighborhood.

This is generally good news for buyers who have been on the fence. You now have more options and likely better pricing. Our spring selling season has officially flattened now with practically no appreciation during the month of May.

Both buyers and sellers should expect more volatility as a move in interest rates could tip the scale in either direction.

As always, don’t hesitate to reach out for more information about your specific needs.

May Market Report - Metro Denver

Tue, 14 May 2024 21:04:18 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $727,700 IN APRIL ROSE 3.8% FROM LAST MONTH AND ROSE 6.9% FROM LAST YEAR.

Quick Stats:

Average active listings for April are 14,048 (1985-2023).
Record-high April was 2006 with 29,045 listings and the record-low was set in 2021 with 2,594 listings.
The historical average increase in active listings from March to April is 10.3 % . An increase of 19.5% this April represents a healthy increase relative to historical observations.

Happy spring everyone!

We are in the heart of our selling season, and the biggest headline (besides high interest rates) is the increase in active listings during the month of April. We saw new listings increase 20% month-over-month and 50% year-over-year. This kind of increase in active listings, combined with high interest rates, should cause appreciation to slow down. However, home values continued to rise with 3.8% month-over-month appreciation and 6.9% year-over-year appreciation.

Buyers, if you've been waiting for more options in our historically low inventory market, now might be the time to take a look to see if any of these new listings are checking the boxes on your list.

Sellers, since you're going to have more competition in May with more new listings still expected, make sure you price correctly. Don't just do a past sale analysis, but be sure to see how your list price stacks up against your current competition.

As always, don't hesitate to reach out if you'd like more detailed statistics for your specific needs!

April Market Report - Metro Denver

Mon, 15 Apr 2024 16:04:23 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $703,330 IN MARCH ROSE 4.1% FROM LAST MONTH AND ROSE 5.6% FROM LAST YEAR.

Quick Stats:

Average active listings for March are 13,376 (1985-2023).
Record-high March was 2006 with 27,309 listings and the record-low was set in 2021 with 1,921 listings.
The historical average increase in active listings from February to March is 11 % . An increase of 6.1% this March represents a slightly slower increase relative to historical observations.

As expected heading into our typical selling season, March gave us an increase in both supply and demand. However, the ratio of supply and demand still remains imbalanced at 1.7 months of housing supply. This resulted in a month-over-month appreciation of 4% which gives us a year-over-year appreciation of 5.5%. These are all pretty typical numbers for this time of year. This is unsurprising, as mortgage rates were less volatile and hovered around 7% for the month of March.

The biggest real estate news in March was the announcement of the proposed settlement from the National Association of Realtors. I've had countless conversations with colleagues and clients regarding its potential impact. We are monitoring the likely effects of this settlement closely, and will continue to keep you informed. Here's a brief bullet point list of what we know now:

The settlement is not final. It is proposed and could become final in July of this year.
The settlement would not prohibit sellers and listing agents from paying buyer's agent fees. Rather, it would prohibit these offers of compensation from being listed in the MLS from listing agents that are members of the National Association of Realtors.
Our local MLS is working on an alternative solution for offers of compensation to continue to be made in a way that would be compliant, should the settlement become final.

While there will certainly be changes to how we transact real estate in Colorado, at this point there will not be "seismic" changes as some media outlets have claimed. I personally am excited about the greater level of transparency around commissions that will hopefully come as a result of these recent events. It will force our industry to grow in areas that it should, and I believe this is a good thing.

If you have any further questions about the latest market data or the NAR proposed settlement, please don't hesitate to reach out!

March Market Report - Metro Denver

Mon, 18 Mar 2024 21:48:42 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $676,575 IN FEBRUARY ROSE 3.3% FROM LAST MONTH AND ROSE 3.0% FROM LAST YEAR.

Quick Stats:

Average active listings for February are 12,671 (1985-2023).
Record-high February was 2006 with 25,484 listings and the record-low was set in 2022 with 1,226 listings.
The historical average decrease in active listings from January to February is 0.3% percent. An increase of 13.1 percent this February represents the second largest percentage increase on record (After 2001's 23 percent increase).

Hi Everyone!

Interest rates continue to be the talk of the town and buyers and sellers alike are keeping a close eye on the continued rate volatility. We saw an increase in demand when rates reached the mid-sixes back in December, but rates have been on the rise as we enter the official start of our selling season. This seems to be slowing the market's typical acceleration pattern.

Sellers, be sure you have a really good plan. Buyers are way more particular as they feel they are paying high prices coupled with high interest rates. Prepare your listings well and have realistic expectations on inspections.

Buyers, be aware that prices last month rose three percent and are likely to rise until we get to summer. When interest rates begin another downward trend, don't be surprised to see a hike in price appreciation. Have a good plan and stick to your budget. You'll likely be able to refinance and get those monthly payments down within the next couple of years.

As always, don't hesitate to reach out for more detailed information for your specific needs.

Best,

February Market Report - Metro Denver

Tue, 20 Feb 2024 20:43:49 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $660,127 IN JANUARY ROSE 0.6% FROM LAST MONTH AND ROSE 5.4% FROM LAST YEAR.

Quick Stats:

Average active listings for January are 12,215 (1985-2023).
Record-high January was 2008 with 24,550 listings and the record-low was set in 2022 with 1,184 listings.
The seasonal average decrease in active listings from December to January is 3.7 percent. A decrease of only 2 percent this January reflects the strong increase in new listings.

I hope everyone is having a great start to the year. It is hard to believe that spring is right around the corner!

Spring is our typical selling season here in Denver, and we're heading into it with some mild momentum. While the average closed price remained flat from December to January, the median closed price increased 3 percent. Experientially, and as reported by a number of my colleagues, January saw the return of bidding wars. These weren't the norm, but real estate professionals have taken note of the influx of buyers entering the market while new listings are lagging behind. I will be very curious to see next month's report, as all the bidding wars from January will be closing in February.

Buyers' main focus continues to be on interest rates. If/when rates begin to come back down, I anticipate demand to increase. If a drop coincides with our spring selling season, the market could gain even more steam. If rates stay steady, I still anticipate a strong season as many buyers who have been on the fence can't wait much longer until their next purchase, due to life circumstances.

Thanks for reading! And as always, don't hesitate to reach out with any specific stats for your needs.

January Market Report - Metro Denver

Mon, 22 Jan 2024 23:15:53 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $657,229 IN DECEMBER DECLINE 0.5% FROM LAST MONTH AND ROSE 3.5% FROM LAST YEAR.

Quick Stats:

Average active listings for November are 12,150 (1985-2022).
Record-high November was 2006 with 24,603 listings and the record-low was set in 2021 with 1,477 listings.
The historical average decrease in active listings from November to December is 17.06 percent. This year’s decrease of 25.63 percent is higher than the seasonal norm, but is in line with what we've seen over the last 10 years at 22.5 percent.

Hi everybody! Zach Florence here with Florence Realty Co, bringing you this month's market update! In December, we saw average prices stay flat, which made our annual year-over-year for 2023 average price go up 3%. Meanwhile, the median price came down 3% last month, so our year-over-year median price has held steady. This means that higher priced homes are transacting more frequently; therefore, bringing up that average price while the median price is remaining the same.

Housing supply took a dip in December. We went from 2.4 months of supply to 1.9. That's going to put a strain on housing supply going into the new year here, which we are currently seeing half way into January. 2023 is in the books, as it was a struggle of a year for many. Transaction count hit an all time low. Our largest 45 day decline in a decade happened at the end of last year from November into December. However, we've turned a corner now in 2024! For starters, rates have come down- a point and a half!

Rates are down, prices are down, and right now consumer confidence is optimistic about what this year holds. I anticipate our selling season to be strong from now through June. Experientially, in the first two weeks of the year already, we've seen that here at Florence Realty Co. If you have questions about anything for your specific needs, don't hesitate to reach out! Stay warm and talk soon!

December Market Report - Metro Denver

Fri, 22 Dec 2023 22:46:46 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $659,152 IN NOVEMBER DECLINE 3.5% FROM LAST MONTH AND ROSE 0.4% FROM LAST YEAR.

Quick Stats:

Average active listings for November are 13,657 (1985-2022).
Record-high November was 2006 with 27,530 listings and the record-low was set in 2021 with 2,248 listings.
The historical average decrease in active listings from October to November is 13.3 percent. This year’s decrease of 10.7 percent could indicate slightly slower buyer demand.

Hey everyone! Zach Florence here with Florence Realty Co. bringing you this month's market update! I’ve got two points of news for you. Depending on what your needs are, they could be good or bad news. One, last month we lost 3.5% of value. That’s a lot of depreciation in a singular month. That brings our year over year appreciation to basically flat. For this year, this is the best pricing that we’ve seen in 2023. Two, we’re also seeing some of the best interest rates as of to date, December 14th, as interest rates came down an entire quarter percentage point. We are now sitting at about 6.75%- the best rate we’ve seen since May!

We’ve got low prices and low interest rates so if you're a buyer, that’s good news! If you’re a seller, probably not so much. Hopefully, however, this will bring buyers off the fence and back into the market. I’ll be curious when I touch base at the beginning of the year to see what next year holds, as we’re sitting at 2.5 months of inventory. So, if we have low rates with not enough supply to meet demand, I anticipate some appreciation to begin in our selling season come February. Until then, let me know if you have any questions for your specific needs! Happy holidays and happy New Year; we’ll see you in 2024!

November Market Report - Metro Denver

Thu, 09 Nov 2023 22:51:40 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $687,917 IN OCTOBER DECLINE 0.1% FROM LAST MONTH AND ROSE 4.2% FROM LAST YEAR.

Quick Stats:

Average active listings for October are 14,755 (1985-2022).
Record-high October was 2006 with 29,722 listings and the record-low was set in 2021 with 3,376 listings.

The historical average decrease in active listings from September to October is 6.9 percent. This year’s decrease of 1.9 percent represents a meaningful change from our seasonal expectations.

Hey! Zach Florence here with Florence Realty Co. bringing you this month's market report. Our months of housing supply increased in September to 2.4 months, which was a noticeable increase. However, it did hold steady throughout October as we are still looking at 2.5 months. I'm keeping a close eye on this statistic since it shows us not where the puck is but where the puck is heading. At present, there is still not enough supply to meet demand, as both are down. The imbalance still exists, which is evident by the fact that though we now have had 7%+ interest rates for over a year, prices have still climbed during the past year. But remember Denver's cyclicality -we're in the middle of the fall and winter annual slump, so expect prices to continue to fall until our appreciation cycle begins again in February or March of next year.

Lastly, interest rates- they're on a roller coaster! They touched 8% percent in October but as of the recording of this video on November 3rd, they've come back down to the mid 7's. If they come down much further, expect some buyers who've been on the fence to reenter the market and create some more demand! As always, don't hesitate to reach out for more information or questions about your particular needs. Thanks!

Tis the Pumpkin Season

Thu, 26 Oct 2023 14:55:49 GMT

Sweater weather, turning leaves, & all things pumpkin! Celebrate this fall season with one of our favorite pie recipes. Enjoy!

October Market Report - Metro Denver

Mon, 16 Oct 2023 22:35:05 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $692,460 IN SEPTEMBER ROSE 0.6% FROM LAST MONTH AND ROSE 3.1% FROM LAST YEAR.

Quick Stats:

Average active listings for August are 15,453 (1985-2022).
Record-high August was 2006 with 31,450 listings and the record-low was set in 2021 with 3,971 listings.
The historical average decrease in active listings from must to September is 0.08 percent. This year’s increase of 11.2 percent indicates new listings are significantly outpacing pending sales.

Hi there, Zach Florence here with Florence Realty Co. bringing you this month’s market update. I’m going to break this down into two categories: bad news and good news.

Bad news #1: There’s a recent survey that came out which states 80% of Americans believe that now is a bad time to buy. Buyer optimism has never been lower -this is actually a new record according to the survey. This is national data, not Denver data. #2: Interest rates have had another rapid increase as they’ve increased over a half a percentage point since the beginning of September. That’s obviously created some bad headlines and contributed to the new record-low buyer optimism our country is experiencing. #3: Denver Metro has now hit 2.4 months of housing supply, the highest it’s been in a while. For most of my career, it’s been below 2 months of housing supply, and even below 2 weeks of housing of supply. Months of inventory is a metric I’m keeping a close eye on.

Let’s talk about some good news! #1: Denver only has 2.4 months of housing supply! That’s still technically a seller’s market. That’s the metric we use to rate the ratio of supply and demand, so there is still not enough supply to meet current demand. If that number hits 4, 5, or especially 6 months of housing supply, then we’d have a balanced market and perhaps a buyer’s market. #2: Interest rates as of October 10th came down statistically about .19%! It’s good to see that kind of recovery. That’s just as of now -most of the headlines that we read track interest rates on a weekly average. Tomorrow they could go back up. However, that is big movement toward recovery on interest rates! #3: Many of my smart buyers know that we are cyclically in our price decline season from now until the end of the year. That fact, combined with higher interest rates, has resulted in more price reductions! We’re seeing some deals to be had and I expect that to be the case from now until February or March, depending on when our selling season kicks off when we’ll see more appreciation. So, in good news, there are going to be some deals to be had for you buyers! Sellers, have good expectations!

September Market Report - Metro Denver

Wed, 20 Sep 2023 22:28:07 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $640,748 IN MAY ROSE 4.9% FROM LAST MONTH AND DECLINED 0.3% FROM LAST YEAR.

Quick Stats:

Average active listings for August are 15,900 (1985-2022).
Record-high August was 2006 with 31,664 listings and the record-low was set in 2021 with 3,582 listings.
The historical average decrease in active listings from July to August is 1.08 percent. This year’s increase of 8.9 percent represents continued underperformance of pending and new listings.

Hey, everyone! Zach Florence here, bringing you this month’s market update. I’ve heard a lot of people talk about how weird the market is; however, I argue that our market is fairly normal! Good properties that are priced well sell quickly, while other properties are taking longer to sell compared to previous years. Yes, now is normal - what we experienced back in 2020 and 2021 was a strange “unicorn market.” Clear evidence reflecting our normal market today: we are sitting at 5% annual appreciation, which is a long-term average for the US. Considering where interest rates are now, 5% appreciation tells us that our market is doing very well.

As expected, we have seen our fall selling season kick off! Our biggest selling season, as you know, is in the spring and our second selling season comes in the fall. Evidently, we saw an increase in pending transactions of 26% after Labor Day weekend. That’s fairly substantial! Buyers are getting back into the market - and sellers are too, as we saw an increase of 91% new listings after Labor Day weekend as well. Our fall selling season is here and it should run through the holidays. As always, if you have any questions regarding your specific needs or your specific market, please don’t hesitate to reach out!

July Market Report - Metro Denver

Tue, 11 Jul 2023 19:10:23 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $713,674 IN MAY ROSE 2.6% FROM LAST MONTH AND DECLINED 0.3% FROM LAST YEAR.

Quick Stats:

Average active listings for June are 15,492 (1985-2022).
Record-high June was 2006 with 31,900 listings and the record-low was set in 2021 with 3,122 listings.
The historical average increase in active listings from May to June is 11.09 percent. This year’s increase of 16.9 percent represents a good increase but is far off from our record 65.8 percent in 2022.

Hi there, Zach Florence here. I hope you had a great holiday weekend celebrating July 4th! During the month of June, we saw an increase of average price of 3% which brings our total increase of average price to a whopping 12% appreciation, just in the first six months of 2023. That has almost recovered all of our losses from Q3 and Q4 of last year. Thus, our annual appreciation as of now is essentially flat. Now, that sounds like a hot market! In one sense, it is. However, our transaction volume is down 23% from last year, which is very significant.

So, how is the market? It’s both hot and cold. Prices have been going up due to our lack of supply; however, transaction counts are down because many people are sitting on the sidelines. Many sellers are holding onto their property with their low interest rates and many buyers are waiting for interest rates to come down.

So, what does the rest of the year look like? If you could tell me what interest rates will do, I could tell you what the rest of the year will look like. Many are hoping for interest rates to come down, which would spur on buying activity. Though as of today, Friday July 7th, we just hit our highest interest rates of the year - well into the 7’s - due to some strong economic data reports that have come out. Needless to say, I don’t know exactly what the rest of this year holds. If rates come down, I expect to see a strong selling season in the later half of the year. If rates continue to push higher, that will certainly slow things down. As always, don’t hesitate to reach out with any questions you may have for your specific needs!

June Market Report - Metro Denver

Wed, 14 Jun 2023 18:37:19 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $697,534 IN MAY ROSE 2.7% FROM LAST MONTH AND DECLINED 2.3% FROM LAST YEAR.

Quick Stats:

Average active listings for May are 14,895 (1985-2022).
Record-high May was 2006 with 30,457 listings and the record-low was set in 2021 with 2,075 listings.
The historical average increase in active listings from April to May is 7.1 percent. This year’s increase of 13.2 percent represents a healthy increase but is far off from our record 26.8 percent in 2019.

Hey everyone! Zach here, bringing you this month’s market report. First off, we saw appreciation up 2.7% during the month of May and down 2.3% year over year, which tells us we are recovering some of those losses that we saw last year. Additionally, supply is low and demand is low, but our ratio of supply and demand is holding steady at 1.3 months of inventory, leaving an imbalance in our market where there is notoriously not enough supply to meet demand.

So I want to touch on three points here:

Rates. The problem isn’t simply that we’re still seeing high interest rates. The problem is our volatility, as we saw rates go from the upper 6’s to the low 7’s and back down to the high 6’s at the end of last month. It’s the volatility that is posing a challenge for buyers. Buyers are moving slower in hopes to see rates dip a bit lower in the later half of this year, as many are predicting.
Rhythms. Expected rhythms for our market have been thrown off by the rise in interest rates and economic uncertainty. Typically, we see a very strong selling season in the spring and this spring did not deliver and in effect, failed to launch. It’s going to be interesting what the rhythm will be for the remainder of the season. Normally, we slow down heading into summer - toward the end of summer, especially. Though, if we see rates continuing to lower, we may have a mini selling season spike in our third quarter.
Reasons. During the pandemic, people were buying because they wanted to. Now, people need to buy or sell a home because they have to. Like I said, if we do see that drop in interest rates, I think we are going to see buyers move more quickly because they want to.

Needless to say, the biggest shift in our market is buyers and sellers transacting not because they want to, but because they have to. If you have any questions about your specific market or needs, as always don’t hesitate to reach out!

Property Tax Appeals

Mon, 22 May 2023 21:46:45 GMT

I’m writing today to answer three common questions I’ve received from many clients regarding the recent and substantial increase in property tax assessments. Many of you, myself included, have received your Notice of Value from the county and felt the shock to see such dramatic increases over the prior assessment. The state of Colorado saw an average increase of 33% since the prior assessment two years ago, and I’ve heard many stories of 50% plus increases, including one homeowner who received a 100% increase. So here are my answers to the most common questions I have received thus far:

Why has my new assessed value increased so dramatically?

As has been well documented, Colorado experienced a historic appreciation in property values since the pandemic began in 2020. Property values hit their peak mid-2022 as the spike in mortgage rates caused significant declines in property values during the second half of 2022. This created a perfect storm as your new assessed value is not based on what your house is worth today, but rather is based on what your house was worth on June 30, 2022, at the peak of the real estate market over the past few years.

Should I appeal my new assessed value?

Maybe! Filing an appeal is a fairly simple online process with most counties. A Mass Appraisal Model (a computer algorithm) generated the comparable sales for your property which could be increasing your assessed value higher than it should be. Submitting the better comparable sold properties along with your appeal could lead to the county adjusting your assessed value lower. When you appeal you’ll be asked for what you believe the value was on June 30, 2022, and if you request a reasonable value, while supplying accurate supporting data, you have a good chance of a successful appeal.

What data should I provide to support a lower assessed value?

Better comparables! The county will only consider comparables that took place during the “study period” (July 1, 2020-June 30, 2022). However, it’s best to pick comparables that fall later in the study period as the county will "time trend" for appreciation to adjust the value for the appraisal date of June 30, 2022. Don’t pick the lowest comparables only as they might consider those outliers and discard them altogether. In addition to better comparables, you can provide any unique information about your house that would negatively affect the value such as below average condition, needed repairs, backing up to commercial space, etc.

We’re here to help! Please let me know if you or anyone you know would like assistance in pulling comparables to assist you in your appeal. And don’t forget, the deadline to file your appeal is June 8th.

May Market Report - Metro Denver

Tue, 16 May 2023 15:19:01 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $682,061 IN MARCH ROSE 2.6% FROM LAST MONTH AND DECLINED 5.6% FROM LAST YEAR.

Quick Stats:

Average active listings for March are 14,296 (1985-2022).
Record-high April was 2006 with 20,045 listings and the record-low was set in 2021 with 2,594 listings.
The historical average increase in active listings from March to April is 10.4 percent. This year’s small increase of 2.3 percent represents the lowest increase since 2014's decrease of 0.6 percent.

The big news is that we saw active inventory increase by a mere 2% last month. To put that into perspective, Denver's inventory typically increases around 10% during the month of April. This slow down is due in part to new listings having decreased last month by 2% when we normally see an increase in supply around this time of year. The lack of motivation from sellers continues as many home owners who are sitting on low interest rates opt not to sell.

In other news, property taxes are making headlines. Colorado has seen an average of 33% increase in property taxes. Between the increased interest rates and people paying more in property taxes, affordable living continues to be an issue in our market.

However, on a positive note, property values went up 2.3% last month, although we are still down 5.6% from last year. Additionally, the overall transaction amount is down 30% year over year. So while transaction amounts have declined, home values are rising as we still do not have enough supply to meet demand.

Where will this lead us? We are still riding the waves that have come out of our post-covid market and therefore cycles are more challenging to predict. Obviously, interest rates are a driving factor in where the market will be by the end of summer, or even the end of this year. Many predictions have come out saying that we may see an extended selling season. Normally, the market cools off at the end of summer but if interest rates level out in the 6’s or even dip down into the 5’s by the end of summer, we’ll certainly see a jump in demand. However, the lack of inventory will remain an ongoing issue.

As always, please reach out with any questions. I am also happy to help with fighting your property taxes by running comps! We’d love to hear from you so don't hesitate to let me know!

April Market Report - Metro Denver

zach@florencerealtyco.com (Zach Florence) — Mon, 10 Apr 2023 21:36:11 GMT

Last Month's Key Statistics

for Denver's Real estate Market

Attached & Detached Single Family Homes

THE AVERAGE SALES PRICE OF $665,390 IN MARCH ROSE 1.4% FROM LAST MONTH AND DECLINED 5.2% FROM LAST YEAR.

Quick Stats:

Average active listings for March are 13,609 (1985-2022).
Record-high March was 2006 with 27,309 listings and the record-low was set in 2021 with 1,921 listings.
The historical average increase in active listings from February to March is 7.6 percent. This year’s increase of 19.5 percent represents the third largest percent change month-over-month.

We are already midway through Denver's selling season! So how does the real estate market look?

Last month, we appreciated another 1.4% - that’s on top of the 4% we appreciated in February! Why is this happening? One, we are recovering our gains that we lost at the end of last year. Two, this is a classic reflection of our cyclical market. Most appreciation happens between February and June each year. While supply is up, demand remains stronger. As a result, we currently have 1.2 months of supply and there is not enough supply to meet demand.

Also, buyers have accepted the fact that interest rates are higher than last year. In good news, some of our buyers have been able to get rates as low as the low 6’s. As we undergo the heart of our selling season, we anticipate this momentum to keep up until mid-summer.

As always, if you have any questions for your specific needs in your specific real estate market, please don’t hesitate to reach out!