DMAR Real Estate Market Trends Report | SEP. '24
While the Federal Reserve Bank lowered rates by 0.50 basis points, a larger cut than many expected, buyer activity remained sluggish. The median close price dropped slightly by 2.34 percent to $576,171, down from $590,000 in August while median days in the MLS increased 19.05 percent to 25 days from 21 days. New listings stayed relatively unchanged with 5,053 while pending sales increased by 3.64 percent to 3,761. Active listings at month end grew slightly by 3.65 percent month-over-month, a staggering 45.69 percent increase year-over-year.
Months of inventory have steadily climbed since last June. For reference, DMAR’s June 2023 report showcased that May had 1.25 months of inventory. In September, months of inventory increased to 3.6 months. This represents the first time months of inventory have crossed the three-month mark, meaning it takes an average of 3.6 months to find a buyer, which traditionally has been categorized as a balanced market. This is a far cry from a pandemic-fueled market that had less than one month of inventory.
“Homes are simply spending more time on the market and experiencing more price reductions before finding a buyer,” commented Libby Levinson-Katz, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “This is a direct result of buyer demand waning due to higher interest rates, and to some degree anticipation for the upcoming Presidential election. Many buyers who I am working with are simply waiting for truly the perfect fit, before submitting an offer.”
Continued Levinson-Katz, “Sellers need to understand that it’s simply taking longer for homes to sell. I do expect the months of inventory to continue to climb as we move closer to the election and the upcoming holiday season. If buyers are waiting for the end of the election cycle and the holidays to wrap up, they may be kicking themselves for not striking while the iron is hot. Historically, sellers have reaped the rewards after an election cycle as home prices tend to increase after an election cycle.”
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 showed a modest influx of new buyers and sellers for homes at or above the $1 million price point which meant the timing felt right for many, likely due to more favorable interest rates. New listings increased 11.13 percent and pending homes were up 5.02 percent as median days in MLS were down one day from 26 to 25. This will mean an increase in closed homes and sales volume in October, which were down 28.20 percent and 34.42 percent, respectively, from August.
Still, there is a growing split between detached and attached market activity. Year-to-date, detached home sales, at or above $1 million, are 7.09 percent ahead of 2023 for sales volume and 9.35 percent up for closed transactions. Attached home sales, on the other hand, have seen 29.45 percent less sales volume and 34.26 percent fewer closed transactions year-to-date. This is partly due to far fewer listings in the attached market, down 32.92 percent year-to-date, as well as increased HOA fees, insurance premiums and taxes.
“Despite the slight bump in new buyer activity over the past month, expect inventory levels to climb as the election approaches and the months get colder,” commented Nick DiPasquale, DMAR Market Trends Committee member and Metro Denver Realtor®. “This bodes well for the savvy buyer, looking for a great home at a good price. Sellers can still find success with patience and creativity.”
Highlights from September closed transactions include the highest-priced attached home at 464 Columbine St. in Cherry Creek, which sold for $3.2 million, and the highest detached sale at 33114 Upper Bear Creek Rd. in Evergreen, which sold for $7.05 million.
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