Metro Denver Real Estate Market Update – August 2024

Our market update for the metro Denver area for August 2024 is broken down into All Residential, as well as Luxury Residential stats.

Below are links to download our update, as well as a breakdown of the stats in more detail:

• Metro Denver Area Residential Market Update
• Metro Denver Area Residential Luxury Market Update
• Metro Denver Area Residential Market Update Detailed Stats

Metro Denver Area Residential Market Update

BAD NEWS LEADS TO GOOD NEWS!

The late Summer Denver Real Estate Market has kept the tradition of Buyers taking a bit of a break while enjoying the end of Summer activities before school starts, and at the same time has been very unpredictable with some amazing homes for sale just sitting on the market and some homes unexpectedly selling very quickly!

This is all about to change soon, as we have just seen three major signals over the past couple of weeks that create the perfect time to buy again and to sell.

1. The indications of inflation slowing down are pretty solid, with the CPI data showing a major slowdown, especially in the labor markets. The Federal Reserve has voiced some key words that indicate an interest rate cut in September is probable!
2. The Active Listing Inventory has increased to 10,584 at the end of July, which is a 68% increase over July 2023. This increased Inventory has created a much better selection for Buyers to see, and a much better negotiating opportunity!
3. Most importantly: Wall Street has already begun to adjust for a September Interest rate reduction of short term rates, which has caused our long term Mortgage rates to plummet over the past week! 30 year mortgage rates are now available in the high 5% to low 6% range, and affordability has improved tremendously!

Sellers, this is the best time to have your home show very well, and priced correctly!

Buyers, as we find ourselves transacting business in a new way in August and beyond, please let us show you the value we bring to your Real Estate Transaction. We have the knowledge, experience and just plain hard work to help you with your largest purchase.

Metro Denver Area Luxury Market Update

The Luxury market is definitely hitting it’s stride.

The total number of sales of single family homes is 15% ahead of this time last year and condos, 30% ahead of this time last year. Prices are holding even with last year and days on the market are still very reasonable. The most active spot in the market is between $1.5M and $3M. For homes priced between $1.5M and $2M, 41.6% went under contract within the first 7 days on the market and for homes priced between $2M and $3M, 49.1% went under contract within the first 7 days on the market. Both categories exceeded list prices by an average of 2.8%. As you get above $3M and $4M these robust numbers shrink somewhat but don’t think that that the ultra wealthy are sitting on the side lines, a $17M property in Cherry Hills Village recently went on the market and went under contract in 5 days.

As is always the case in the metro Denver market each neighborhood has very specific conditions so pricing correctly for the perceived value is still critical. Buyers are willing to pay top dollar for what they perceive as the perfect property.

For Buyers who are willing to look at a property that may need some improvements there is great opportunity to get a strong value as many Sellers are having to make price reductions to get sold.

Sellers, now is a great time to get your house on the market with interest rates coming down and buyers out looking we are starting to see a little bit of an early fall heat up in the market.