As 2023 wrapped up, Denver's real estate landscape underwent distinct changes. December echoed a familiar seasonal rhythm, despite a decline in interest rates that began in November. The median closing price saw a modest reduction to $551,993, a 2.8 percent dip, while closed sales fell to 2,620, marking a 7.65 percent decrease. A significant increase in median days on the market was observed, climbing by 31.82 percent from 22 to 29 days.
Yet, when we take a step back and consider the year as a whole, the picture brightens, especially when seasonal trends are factored in. The decline in new listings was negligible, down by just nine homes from the previous year, bringing the total to 1,725. Pending sales saw a healthy 10.87 percent increase, totaling 2,471 homes. The median closing price rose slightly by just over $1,000, and the median days on the market edged down from 30 to 29 days.
Delving deeper, the year-over-year performance of single-family homes surpassed that of attached homes. Single-family home listings grew by 4.33 percent, and pending sales surged by 12.98 percent. The median closing price for these homes rose to $613,500, a 2.25 percent increase. The close-price-to-list-price ratio improved to 99.55 percent, and median days on the market dropped from 32 to 29 days. In contrast, attached homes saw a decrease in new listings and closed sales, though pending sales were buoyed by a 5.95 percent increase, and the median closing price went up by 2.46 percent to $418,701.Reflecting on the entire year, the real estate market mirrored the pre-pandemic era of 2019, with a slight dip in sales volume but a higher median closing price. Although not at the peak levels of past years, home prices are likely to continue their upward trajectory, especially if demand intensifies. Many industry experts predict an earlier start to 2024's selling season, fueled by accumulated demand, attractive lending conditions, and warmer weather.
The luxury market, homes priced over $1,000,000, demonstrated resilience in December against interest rate fluctuations. Activity increased due to lower interest rates, strong year-end investment returns, and a softening stance from the Federal Reserve.
Despite a marginal decline in closed properties from November, there was a notable increase in total sales volume compared to December of the previous year. Pending sales experienced a seasonal dip but remained significantly higher than the previous year, indicating sustained buyer interest. The year-end summary reflected a decline in closed sales for both detached and attached homes, consistent with broader market trends.
Looking ahead to 2024, there's a sense of optimism in the real estate market. Predictions point towards more stable interest rates and a healthier equilibrium between supply and demand. The Denver market, thus, seems primed for a steadier and more positive year ahead.
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