How is the Denver market kicking off in 2023?
How is spring looking? Traditionally it’s the time of the year when the market starts heating up. The Super Bowl is over, weekends are freed up, taxes have been filed (for some of us), and the longer daylight hours get people in happier moods.
In terms of what’s actually happening, the 7-county Denver market is seeing 700-800 new listings hitting the market each week, with 900-1000 homes also going under contract each week. This means that the growing backlog of inventory we experienced through the winter is starting to dwindle back down.
Our number of homes available for sale on any given day is hovering between 3,700 and 4,000. Our median days on market has dropped dramatically from 40-50 days during New Year all the way down to 13, a number we haven’t seen since last July.
Last spring, before the market shifted and rates were in the 3.5% range, we were seeing a similar number of new listings each week (roughly 800-900), with the same number going under contract each week.
The difference between now and spring 2022 is that the backlog of homes hadn’t been given time to build up because essentially every home being listed was selling immediately. So, instead of 3,700-4,000 homes available for sale on any given day, we had 1,200.
The numbers we’re seeing today are very much in alignment with what we saw pre-COVID. 3,700 homes for sale. 1,000 new listings a week, and a dozen median days on market.
Likewise, showings are only 10-20% of what they were during the COVID craze, with listings reporting 2-4 showings per week instead of the 25 that were commonly experienced opening weekend during 2021 and 2022. The 2-4 showings we’re seeing now is close to, though a bit slower, than what was normal pre-COVID.
So, what do we expect in the coming months?
We expect to see the number of new listings hitting the market to keep climbing, probably doubling from the 700-800 per week to 1,500 per week by late spring.
Interest rates, after peaking at close to 7.4% last year for a 30 year fixed mortgage, are just sort of dancing around in the mid 6%’s right now, but creeping back up toward 7% after hitting 5.99% for a day a few weeks ago. What happens with mortgage interest rates will largely depend on what the Fed thinks of the ongoing inflation and unemployment numbers. I think it’s realistic to expect rates to bounce around in the 6%’s for the coming months.
So, what does all that mean?
Buyers, let’s meet now to get your search set up. Don’t miss out on the front wave of climbing inventory. Let’s get your financial pre-qualification ready to go, even if you don’t plan to move until May or June.
Past sellers’ top advice for future sellers is “start the process sooner!”
Sellers, sooner is looking to be better than later if you have the choice to pick your listing timing. The number one piece of advice we hear from past sellers for future sellers is “start the process sooner.”
It takes time to get a property in the best condition for showing and selling, so while we at RAGE are in no rush, we want to help you get your plan in place so that you can move at whatever pace you prefer.
Real estate is looking to on track for it’s seasonal cycle, and we’re here to help guide you through the process.
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We hope this content serves you well as you seek to be savvy homeowners and make wise financial decisions for your future. If you'd like to chat further or are considering moving in the coming months or year, let's get a meeting scheduled today!
- Josh & The RAGE Team
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
