Although the number of active home listings in metro Denver jumped 31% in May, the median close price only dropped slightly, and the close-price-to-list-price ratio continues to hover around 100%

According to the Denver Metro Association of Realtors monthly report, active listings increased from 6,990 in April to 9,159 in May, and the number of new listings increased from 5,979 in April to 6,966 in May.

The number of active listings is up 75% from May 2023, while the number of new listings is up 34% from a year ago.

Despite the increase, the number of homes on the market remains historically low. The average number of active listings for May from 1985-2023 is 14,895. The historical average increase in listings from April to May is 7.48 percent, so this year’s 31% increase set a record and surpassed the previous record of 27% in 2019.

Despite continuing high interest rates, more homeowners are selling their homes.

Experts expected inventory to remain flat this year without significantly dropping mortgage rates. Homeowners who secured 4% or lower interest rates during the pandemic would be reluctant to sell their homes unless motivated by major life changes.

Although buyers have more options, their negotiating power remains limited as the close-price-to-list-price ratio rose slightly to 99.8% in May from 99.7% in April.

Buyers need to consider several things during this busy season including how fast home sell, the condition of the home, location, and budget. They also should expect to move quickly when they find the right house for them.

Sellers need to be prepared for knowledgeable buyers this summer and be patient with difficult economic conditions. Major repairs are dealbreakers and need to be taken care of proactively before listing or closing. If not, unwilling sellers should prepare for many would-be buyers to pursue other homes or explore new home communities instead.

If you’re ready to buy or sell, now could be the perfect time. Reach out to one of the experienced professionals at Metrowest and let’s go over your options!