As we all wait to see how mortgage rates will change in the coming months, it appears Colorado’s real estate market is in fact heating up as spring approaches.

According to the February Market Trends Housing Report from the Colorado Association of Realtors, new listings jumped statewide last month, with 6,361 new single-family homes and 2,174 new townhome/condo listings. That’s up 18% and 26%, respectively, over January and 19% and 27% over a year ago.

Buyers are hoping the mild winter and early spring weather will encourage sellers to enter the market earlier than usual, increasing competition and creating more buying options.

Closings on the Rise

Statewide, single-family home closings rose 34% in the past month and are up 5.7% from a year prior. Townhome/condo closings were up more than 38% month over month and are up 7% from February 2023.

The number of pending/under contract single-family homes statewide increased 10% over January and 5% over a year ago. Townhome/condo pending sales increased 13% over January and .9% over a year ago.

Overall, the market remains very strong. More inventory is coming on the market; however, it’s not enough to meet demand, so buyers still must be competitive and relatively quick with their offers,

Home Prices Ticking Up

The statewide median sales price of $558,900 is up 4% from a year ago. The days on the market dropped to 62 from 65 a year ago, while the percentage of list price received inched up to 98.8% from 98.5% a year ago.

Elevated interest rates continue to make headlines and create affordability pressures, but they don’t seem to be curbing the massive demand for housing in Denver.

If you’re thinking of becoming a homeowner this spring, the time to start the process is now. Demand has sparked a more competitive market and if these trends continue, we can expect sales prices to continue to increase and time on the market to decrease. What are you waiting for? Contact Metrowest today and let’s start exploring your options!