According to the January Market Trends Housing Report from the Colorado Association of Realtors, there was an 80% jump in single-family listings and more than an 88% increase in townhome/condo listings compared to December.

Statewide, single-family listings increased 75% in January, while new townhome/condo listings jumped 73.2%. It appears the combination of lower interest rates and general optimism of a new year brought buyers out to look and sellers ready to list.

Industry insiders noted that buyers who waited during the fall and holiday season took advantage of the new options, with the number of pending or under-contract homes up 8% for the month over January 2023. The number of pending or under-contract homes in the Denver metro increased 10% over last January, which kept the percent of list price received at 98% for both the metro and statewide.

The median single-family home price increased to just under $600,000, up 1.7% from December and 5.3% from a year earlier.

Buyers are becoming acclimatized to the new interest rate baseline in the 6% range, and sellers are shifting their mindset away from trying to time the market and back towards acting based on wants and desires rather than needs.

With more inventory, sellers must watch pricing and prepare to negotiate. The spike in activity last month is evidence of a large backlog of buyer and seller demand, and we can expect to see a strong, competitive market as we move into the spring season.

Some agents predict that continued low inventory could again spark bidding wars, and if the spring buying season is anything like past spring markets, we will most likely see multiple offers and shrinking average days on the market as our housing shortage continues.

If you’re determined to become a homeowner in 2024, the time to start looking is now. Reach out to Metrowest today and let’s go over your options!