Denver’s Real Estate Market in 2024: Better for Buyers

Published:
March 12, 2024
Last updated:
March 12, 2024
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Recent reports have shown that the Denver real estate market in 2024 could be more friendly toward home buyers.

Home prices have flattened out after several years of steady gains. Houses are taking longer to sell with fewer offers. The Denver metro area was recently singled out as having the biggest increase in new real estate listings over the past year.

Through the rest of 2024, some Denver home buyers could enjoy a more casual house-hunting experience with more properties to choose from.

More Homes Coming Onto the Market in Denver

Earlier this month, researchers from Realtor.com published a housing market update that included trends for the nation’s 50 largest metro areas. Among other things, this report showed that many markets across the country are finally experiencing some much-needed inventory growth.

The Denver metro area topped the list, posting the biggest year-over-year increase in new real estate listings over the past year or so.

According to the February 2024 Realtor.com report:

“In January, more than half of the 50 metros included in the analysis saw new listings increase over the previous year, with some of the largest growth happening in Denver (+21.3%), Seattle (+20.6%), and Miami (+20.2%).”

The Denver new home listings metric looks at how many homes have come onto the market recently and how that rate changes over time. The Denver metro area also had a measurable increase in total housing market inventory over the past year.

If this trend continues, home buyers who enter the Denver real estate market in 2024 could have an easier time finding a property. They might encounter less competition from other buyers as well, due to a better balance between supply and demand.

To be clear, the Denver real estate market still suffers from a relative supply shortage. The same is true for most major cities across the United States. However, the situation appears to be improving for home buyers in 2024.

A Slower Pace Within the Real Estate Market

In this latest report, the Denver real estate market also stood out in other ways. It’s one of the only major housing markets in the country that currently has a slower sales pace than before the pandemic.

In Denver, the average time that homes stay on the market has increased, indicating a general slowdown within the real estate market. This means sellers are taking longer to sell a house these days.

To quote the Realtor.com report again:

“Only a handful of markets saw an increase over the typical 2017-2019 pre-pandemic time on the market. These include the major west coast tech hub of San Francisco (+9 days), as well as Seattle (+9 days), Denver (+7 days)…”

This is another positive trend for Denver-area home buyers in 2024. In addition to having more properties to choose from, local buyers might enjoy a more relaxed house-hunting experience.

According to Multiple Listing Service (MLS) data and other sources, Denver-area homes spent a median of 44 days on the market in January 2024. The median DOM hovered below ten days a couple of years earlier, indicating a much faster pace.

So, no matter how you measure it, the Denver real estate market in 2024 is moving slower.

But buyers beware. The market is not necessarily “slow all over.” Conditions can vary from one community or neighborhood to the next. Desirable homes in hot neighborhoods are selling quickly in the Denver metro area, with a significant percentage off the market within two weeks.

Prices Have Been Flat Over the Past Year

Denver home price trends over the past few years can be summed up in a single sentence. Home prices rose steeply during 2022, declined a bit going into 2023, and remained flat over the past year or so.

According to the latest data from Zillow, the median home price within the Denver real estate market was around $550,000 last month. That’s roughly where it was one year ago.

This is another trend that could benefit Denver home buyers in 2024. Instead of feeling the urgency brought on by rapidly rising prices, buyers entering the housing market over the coming months could feel less pressure.

One forecast even predicted that prices in Denver could decline a bit during the rest of 2024. That prediction also came from Realtor.com but in a separate report from the one mentioned above.

Back in November, the company predicted that home prices in the Denver-Aurora-Lakewood metropolitan area would drop by -5% in 2024.

Granted, these are predictions rather than certainties. But they do underscore a recurring theme throughout this article. The Denver real estate market has cooled considerably; home buyers could benefit from that in 2024.

Denver’s Real Estate Market Looking Better in 2024

The Denver area hasn’t entirely shifted from a seller’s to a buyer’s market. There is still an ongoing shortage of homes for sale compared to the number of buyers seeking them. And such conditions tend to favor sellers when it comes to negotiating.

It’s more accurate to say that conditions in the Denver real estate market in 2024 have shifted in a buyer-friendly direction. With stable prices, lower mortgage rates, and more properties to choose from, Denver home buyers have a golden opportunity to succeed in 2024.

If you’re looking at buying a home in Denver, CO, in 2024, consider partnering with a team of mortgage specialists early on. Before you start house hunting, get pre-approved for a mortgage in Denver, CO so you’re ready to put in a solid offer when you find the perfect place to call home!

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