- Average close price fell slightly from december (1.5%) but was 3% ahead of january 2022 as buyers and sellers jumped back into the market.
- Like the start of last year, the january market gained momentum each week as we saw an increase of 65% new listings and 51% more under contract.
- Many investors who purchased in late-2022 after prices dropped & are listing flipped “move-in ready” homes now are benefitting from high buyer demand.
Since April 2022, when we hit the high-water mark for average close price in Denver Metro, there has been a lot of talk (and writing) about how we are seeing a normalizing market. We experienced the winter slowdown these past few months, and some people even asked, “where is the bottom?”. Listen to the right (or wrong) podcasts, and you will even hear that the market is set to crash soon.
Seeing Through the Mixed Messages
Despite these mixed messages, the data shows the Denver Metro housing market remains stable and strong. Every market presents its own challenge and, more importantly, opportunity for those who know where to find it. This market is no different.
Average close price was down 1.5%, closings were down almost 30%, and median days on market jumped 13% (up 5 days). On the surface, it may look as though we continued on a downward trend, a fact further exacerbated when we compare against January 2022: closings are down 34% and median days on market are up from five days to 34.
That is only part of the story though — new listings are up 65%, and pending homes are up 50% over last month. Buyer demand is high and there are more creative and available financing options. If we consider the close price and days on market as trailing metrics, meaning they represent where the market was three to six weeks ago, new inventory and pending homes are leading metrics and show us where the market is heading.
A Shifting Market
Anyone who was close to it witnessed the market shift in January. While the month started with a holiday hangover, sellers eagerly listed their homes and buyers dove back in. So far, investors who purchased in the fall and winter of 2022, updated the home and then listed in January may be benefiting the most. These “move-in ready” homes appear to be seeing the greater share of multiple offers over list price. Contrast that with homes needing a little work, and they are still seeing price reductions in a lot of cases.
While the frenzy we experienced last year is unlikely to return, bidding wars became more common again last month. How much and how widespread will show in next month’s data after those homes close in February. Through all of the mixed messaging, certain facts are clear: buyer demand remains high and sellers still hold the advantage.
Inside the Numbers