Denver Real Estate is Heating Up.

The Data

Last month we talked about how the spring market has been interrupted by geopolitics the past few years. New listings had ground to a halt, relatively speaking, for a spring market. Guess what? The trend has continued. New listings on a YoY basis are down 5.87%. We still have reasonable demand, so couple that with lower than normal inventory and we’ve created a “false bottom” on pricing.

Pending home sales fell off last month too. We dipped 1.88% from the prior month, but YoY we saw a healthy pop of 8.37%. So what does this mean?

Market acceptance.

Rates have been bouncing around the 6% level for some time now, and in prior years it was always wait for rates. This data tells us the wait is over. We’ve accepted it.

Inflation

The real alarming trend is back. Inflation.

Inflation data came in hot recently, up 3.8% YoY. Housing prices in Denver are an anemic 0.17% up YoY. We are stagflating home prices back toward more affordable ranges. Prices aren’t coming down; they’re just not keeping up with inflation. Nationally, the trend matches. Home appreciation is underperforming inflation.

This explains why we’re seeing fewer and fewer move-in-ready homes. The economics just aren’t there for developers, flippers, or homeowners. Updated houses hitting the market are mostly renovations from the last decade. Brand new and shiny is few and far between.

If You’re Selling

Price appropriately. If your home needs work, expect the market to discount it accordingly. Overpriced homes are leaving more money on the table than they would have if they had priced them right. The market is telling you something. Listen to it.

If You’re Buying

Days on Market dropped 12.5% last month. Quality homes are trading quickly. If you find a house you like, act fast. This is happening when layout, updates, and price all align. Chasing the move-in-ready unicorn is a losing venture. Target location and layout. That’s where your future upside lives when the market returns to historical norms.

For Our Relocators

Winning in this market takes patience. It’s why our rent-first-buy-when-you’re-ready approach works so well. Take your time. Let’s do the research together. It’s a winning route, and it’s hard to beat when you’re staying in a top-notch home with industry-best agents in your corner.