Denver Real Estate Market Update: Rates, Prices, and Trends Explained
As we discussed last month, the recent month-to-month price decline raised some questions, as it seemed inconsistent with other market indicators. Rates have since trended down an additional 25 basis points, and the latest data reveals a 4.3% increase in average home prices. While these fluctuations may appear noisy, several significant factors have impacted the Denver real estate market recently.
With rates continuing to lower and shifting political dynamics, there’s a renewed optimism impacting buyer and seller sentiment. Major indices like the Case-Shiller Index use a rolling three-month average to filter out short-term fluctuations, providing a clearer picture. This fall, the market shows signs of leveling out, with a generally flat-to-down trend.
What’s noteworthy in Denver is the return to a more balanced market. Inventory is around a three-month supply, and the list-to-close price ratio is stabilizing at 98%. This indicates that homes priced correctly are selling within a reasonable time frame, offering both buyers and sellers greater predictability.
At RealGroup, we’re closely watching third-party valuation models with a bit of caution. These models, often driven by algorithms, have shown significant swings in property values—sometimes overestimating, sometimes underestimating. While these algorithmic estimates can be unpredictable, they have a noticeable impact as buyers and sellers increasingly rely on them. While these online valuations are convenient, they don’t capture the nuances of the Denver market. In some cases, these fluctuations may even influence decision-making for buyers and sellers.
Our advice? Relying on a trusted Realtor® is essential for a more accurate and personalized valuation. At RealGroup, we believe that local expertise provides the best insights into Denver’s market dynamics, giving you a clearer sense of your property’s true value. For anyone navigating the Denver real estate market—whether buying, selling, or relocating—a professional Realtor’s guidance is invaluable, especially in today’s evolving landscape.
As we continue into fall, we’re here to help you make informed decisions, understand the latest trends, and maximize your real estate opportunities in Denver.
Denver November 2024 Market Stats – source DMAR