Denver real estate professionals are sensing a potential warmup in the 2024 housing market. That’s following a year when rising interest rates, high prices and low inventory had chilled home sales.

In its January Market Trends Report for the 11-county area, analysts at the Denver Metro Association of Realtors continued seeing small, month-over-month drops in key indicators. However, they’re noting that the year-end picture is markedly better than it had been coming into 2023.

According to the new December numbers, inventory of homes on the market is up 4.5% year-over-year, with the average price up over 3% and pending sales up nearly 11%.

The average amount of time to sell homes increased both month-over-month, and year-over-year, 46 days. That level stood at 38 in November, and 43 a year ago.

The news looks better still when the report focuses on single-family homes as opposed to townhomes or condos.

The median closed price of a detached home in the area, now at $613,500, was down 2% from November’s average, but up 2.25% from a year back. The average detached price, $733,116, was down a percent over the month previous, but up almost 4% year-over-year. Average prices, as opposed to median prices, can be skewed upward by a small number of very high-priced sales.

Libby Levinson-Katz, who chairs DMAR’s Market Trends Committee said that last year, the Denver real estate market was challenging as we dealt with a lack of inventory and interest rates that seemed to go up daily. But despite these issues, buyers and sellers found a way to come together in a stabilizing market.

She also noted that the new market bears some uncanny similarities to what the Denver area was seeing before the COVID-19 pandemic unleashed a tsunami of home sales that drove prices to record levels.

If you’re thinking of becoming a homeowner in 2024, now is a great time to start looking. Contact one of the experienced pros at Metrowest and let’s see what’s out there!