The Denver metro real estate market continues to struggle with limited inventory, with the number of available properties listed in February at 3,778, down 8.3% from January but up 208% over February 2022.

That limited inventory continues to keep prices high. February’s median closed price of $562,500 is up 4.4% from January but down 2.2% from a year earlier.

Properties are staying on the market longer, with the average days available at 48, up 4.4% from January.

Historically, we see Denver’s most active market falling in the months of February through May and we are on trend for this year to follow suit. Higher interest rates don’t seem to be deterring buyers and industry pros are back to seeing multiple offers within the first weekend of properties being active on the market that are correctly priced or lower priced (of market value).

With many lenders offering free re-financing options, along with the assumption of interest rates going down next year due to being an election year, buyers are very motivated.

Despite higher interest rates, sellers see more showings per listing. Buyers are watching rates closely and patiently waiting for new inventory to hit the market said Libby Levinson-Katz, chair of the Denver Metro Area Realtors Market Trends Committee.

Buyers are more discerning about home prices, less willing to compete and will only jump into a bidding war if the house is move-in ready and suits their needs. However, some buyers are ready to compete for the right property.

The luxury market continued to be hot in February, with a 61% increase in new listings compared to the previous month. Closed sales were strong at 241 for the month, up 24.5 percent from January and 28 percent over February 2022. The median days on the market dropped to 23 from 47 in January, but that’s still up from 5 days in February 2022.

If becoming a homeowner in 2023 is one of your goals, there’s no time like the present to start preparing. Contact the professionals at Metrowest today and let’s discuss your options!