March 2023 data shows a market that is picking back up in spring 2023.
The spring market is here and is outperforming expectations. Sellers who jumped into the market are reaping the rewards with the return of multiple offers and more seller-friendly terms. New listings were down 15.61 percent to 5,093 year-over-year, which is 942 fewer properties lowering the number of available options for buyers to view and place offers. For perspective, inventory year-to-date is lower with 8,833 closed sales in March 2023 compared to 9,590 in 2014. Interestingly enough, new listings in both the attached and detached segments rose over 47 percent from February showcasing that more inventory is hitting the market.
Pending homes were also down year-over-year; however, they rose 22.32 percent month-over-month, which is an increase of 3.21 percent from last year. Sellers are advised to continue to price their properties thoughtfully to elicit strong offers as properties are still falling out of contract due to inspection items or issues arising from buyer financing.
Buyers are not down and out in this market. They know the game and are coming prepared. The median sales price was down 6.15 percent from $602,000 last March to $565,000, and median days in MLS increased from four days last year to 10 days for both the attached and detached segments of the market. Even though bidding wars have subsided from last spring, they are on the rise again for turnkey homes that are new to the market. Buyers understand that prices are down and days in MLS are up. They are doing their research and are also keenly aware of Denver’s seasonality with the knowledge that more homes will hit the market month-over-month as we head into summer.
“Interest rates began their steep upward climb last May, with the real estate market feeling the slowdown acutely by fall,” commented Libby Levinson-Katz, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “Heading into the New Year, expectations were conservative with the prediction that the spring selling season would be calmer than in years past with slower appreciation and longer days on market. However, low inventory coupled with continued buyer demand resulted in a stronger start than predicted for the Mile High City.”
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999) and “Classic Market” (properties sold between $300,000 and $499,999).
This March, the Luxury Market in the Denver Metro area showed it is alive and well. Median days in MLS in the Luxury Market went from 23 days down to eight, a dramatic 65.22 percent decrease. This decrease represented a rapid increase in market pace. What’s more, the Luxury Market led the entire Metro Area in both pending and closed transactions, up substantially over the previous month by 48.92 percent and 51.37 percent, respectively.
The average close price for homes in this segment is now $1,652,866, up 1.42 percent from a year ago. Today, the detached segment offers 2.4 months of inventory, while the attached offers three. As a result, the Luxury Market remains a seller’s market … at least for now. Market watchers will notice the close-price-to-list-price ratio in the luxury space inched up 1.10 percent month-over-month to 99.46 percent. This means that sellers, on average, are receiving full-price offers and are in control at the moment.
“There are no broad brushes in real estate, not today, not ever,” said Michelle Schwinghammer, DMAR Market Trends Committee member and Metro Denver Realtor®. “Whether selling or buying, understanding market forces and activity is critical to navigating your best outcome. Engage with a Realtor® who can help you clarify your objectives, and make smart decisions within a complex environment.”
Source: https://www.dmarealtors.com/
