Denver's real estate market is coming out of a sluggish 2023, and realtors are bullish about making more deals in 2024.
Over the past year, many potential sellers and buyers stayed out of the home-buying game, turned off by sky-high mortgage rates that made the proposition of buying a home unattainable or undesirable for many, even as home prices slightly dropped and sellers started offering incentives.
But Federal Reserve Chair Jerome Powell, who implemented the mortgage rate hikes to combat inflation, has suggested that in 2024 the fed will be cutting rates three times, potentially starting in March.
"If rates continue to decline, I expect to see more buyers enter the marketplace," explained Libby Levinson-Katz, chair of the Denver Metro Association of Realtors Market Trends Committee, in the real-estate trade group's January market trends report. "There has been significant pent-up demand from both buyers and sellers over the last two years who have been interest rate adverse. If demand increases, this will ultimately provide some pressure on home prices."
In December, the median home price was nearly $552,000, down slightly from the same month in 2022.
The median price of a house at $613,500, and the median price of an attached unit such as an apartment or a row home is at $418,701.
"Year over year, new listings declined by only nine homes from last year with 1,725 new homes for sale, and pending sales increased 10.87 percent to 2,471 homes," Levison-Katz wrote in the report.
Moving into 2024, she says things are uncertain.
"National predictions indicate a slight increase in inventory with prices staying relatively sable," Levinson-Katz noted. "Denver does not follow national trends and predictions, often outperforming the rest of the country. Ultimately the trajectory of the year is dependent upon interest rates and consumer confidence."
