DMAR Real Estate Market Trends Report | NOV. '24
November brought a unique set of challenges. The first two weeks included the release of the employment data report, a presidential election, the Federal Reserve meeting and the consumer price index report. Each of these events introduced market volatility. While many consumers may not track these data points as closely as we do, they can still feel the uncertainty and fluctuations in consumer confidence.
“With challenges come opportunities,” commented Amanda Snitker, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “Buyers in this current end-of-year market are finding gifts on a level rarely offered. Of the homes sold in November, about 50 percent had at least one price reduction before going under contract, and roughly 60 percent of the sellers provided concessions to buyers, many in the form of interest rate buydowns or repair credits.”
Month-over-month, November saw a decrease in the number of properties that closed and went pending.
Continued Snitker, “This is not surprising given the month’s complexity and the increase in mortgage rates, which returned to the seven percent range.”
Heading into the holiday season, the Denver Metro has seen a decrease in the number of new listings entering the market, which is typical this time of year. A decrease of 40.38 percent for attached homes and 41.90 percent for detached month-over-month allowed buyers to absorb some of the inventory, resulting in a 14.90 percent decrease in the active listings at month’s end compared to October. Although inventory declined month-over-month, November saw an increase of 57.08 percent in attached homes and 32.01 percent in detached homes year-over-year. This presents opportunities for buyers to take advantage of higher inventory and reduced competition during the winter months.
Although inventory remains higher than in 2023, the median sale price for detached homes increased by 1.90 percent compared to November 2023. Attached homes saw a slight decline of 1.20 percent over the same period.
Through November 2024, 54,006 new listings entered the market, an increase of 12.84 percent from 2023. However, the total number of new listings still lags compared to recent years; through November 2020, 66,947 new listings had entered the market. The total number of sold properties in 2024 reached 39,153, a slight 0.31 percent decrease from 2023 but a significant 32.83 percent drop compared to year-to-date 2020.
By the end of November, active inventory totaled 9,310 properties, with 3,022 properties closing during the month. These figures closely resemble November 2013, when 9,352 properties were on the market and 3,661 properties closed. Looking back, many buyers would describe 2013 as a favorable market, even though it came with its own challenges, such as a 7.4 percent unemployment rate and the lingering effects of the Great Recession.
Our monthly report also includes statistics and analyses in its supplemental markets that include properties sold for $1 million or greater, properties sold between $750,000 and $999,999 and properties sold between $500,000 and $749,999.
Activity in the $1 million+ market began its expected seasonal slowdown in November. Activity in this segment mirrored the rest of the market, with a significant decline in overall activity.
Sellers pulled back following a fall’s burst of activity, leading to a 46.68 percent drop in new listings for November. Pending and closed sales were also down from October, falling 23.71 percent and 22.93 percent, respectively. This slowdown left the $2 million-plus segment with the largest inventory in the market. Detached homes above $2 million had nearly seven months of inventory at 6.86, while attached homes had an even higher 8.5 months. Detached homes priced between $1 million and $1.99 million maintained a more balanced inventory level, with 3.13 and 3.91 months, respectively. The year-long divergence between the detached and attached markets continued, as attached homes priced between $1 million and $1.99 million remained firmly in a buyer’s market, with 5.62 and 6.75 months of inventory, respectively.
For the 353 homes priced above $1 million that did close in November, sellers required more patience. Average days in MLS increased month-over-month, stretching to 54 days for detached homes and more than doubling for attached homes to 109 days. Average prices also declined from October, with detached home prices falling slightly from $366 to $364 per square foot and attached home prices dropping over 10 percent to $577 per square foot.
Despite this overall slowdown, November’s sales activity was robust compared to this time last year. Listings were up 5.69 percent and pendings, closings and overall sales volume each increased more than 23 percent from November 2023.
“While many sellers will decide to “hibernate” their properties until early next year, those who remain on the market will face much less competition,” commented Colleen Covell, DMAR Market Trends Committee member and Metro Denver Realtor®. “Buyers who stay active can find supremely motivated sellers and opportunities for great deals that may not be available once the market thaws in the spring.”
Highlights from November closed transactions include the highest-priced attached home at 345 Clayton Street, which sold for $4.1 million, and the highest detached sale at 916 Juniper Avenue in Boulder, which sold for $10 million.
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