New Year, New Insights
As we kick off the new year, it’s the perfect time to reflect on market trends and uncover insights that can guide your real estate decisions. More inventory, longer days-on-market, and lower close-to-list ratios logically result in lower home prices, but that's not what we’re seeing in central Denver. Home prices have continued to stay steady, and have even increased in some areas.
Compared to December 2023, December 2024 ended strong with 6.4% more new listings, 38% more active listings, and 13% more closings. There was also an increase in showings over the holidays, suggesting that more buyers are entering the market and ready to start transacting real estate early in the new year. With no promise of lower rates ahead, buyers are comfortable starting their searches now.
However, In conversations with clients and friends, I’ve noticed some potential upgrade buyers are hesitating to move from their current home into a new one because today’s interest rates are higher than those on their current mortgage. It’s completely understandable to pause when rates are a consideration, especially if you’re looking to upgrade your home’s size or location. That said, I haven’t heard from any lenders expecting rates to drop back into the 3% or 4% range, so determining the best strategy to move forward is vital.
Here are a few advantages I’m seeing in the current market for buyers:
Less buyer competition: With fewer buyers in the market, you’re less likely to face multiple offers or see prices bid up when you find the home you love. While this could shift as we move into the early spring market, it’s a great opportunity for buyers right now.
More active inventory: Active listings are up 38% year-over-year, indicating more homes are aging on the market. In faster-paced markets, homes that sit often have a quality or feature that deters buyers. In today’s market, it’s more likely they were priced incorrectly when first listed and didn’t generate the interest they deserved. I’ve seen significant opportunities in this category, particularly during the winter months.
Seller-paid concessions: This is a big win for buyers and something sellers should be aware of. In December, 66.6% of transactions included seller concessions, a trend driven by higher interest rates. These concessions are typically used to offset buyer closing costs, with many buyers using the funds to buy down their rates. The average concession last month was $12,878, though it can vary. For example, I recently secured a $50,000 concession for a client, allowing them to buy their rate down from the 7% range permanently into the 5%s.
The market is always dynamic, but right now it varies greatly by the price range you're looking to buy or sell in. Knowing the market stats specific to your price range (and neighborhood) allows you to position yourself, or your home, for the greatest success. Now is the perfect time to set the foundation so you're ready if the right opportunity arises. If you want to stay informed or get educated on a particular price range or neighborhood, I can help.
January Market Report
I've put together some great visuals and explanations of how the market looks by price point, and in some cases by location, You can access the full guide by >> CLICKING HERE, or I can help walk you through your specific areas of interest.
January Buyer Tips
Don't ignore the home-buying opportunity of this winter season. We saw higher inventory levels during the holiday season than last year. Of all transactions in December, 66% had seller concessions. That means as a buyer you can use those seller concessions to offset closing costs or buy your interest rate down which can help decrease your monthly payment. Get prepared now by speaking with a realtor and lender to explore your options.
January Seller Tips
Pricing and first impressions continue to be key in the market. Having your home show-ready with the pricing strategy dialed in from the start will ensure you get the most eyes and return on your investment. It's also key to note that unlike the more frenzied times, buyers are taking their time to make decisions and often have the opportunity to do second or third showings before submitting an offer. As we find ourselves moving in a more balanced market, it's important to know that the timelines are different than they were a few years ago. Your ideal buyer and offer might take more time to materialize, and that's ok.
Michelle's Must Try
A hidden secret tucked away in Nederland, CO we stumbled upon this little gem after a quick first ski day at Eldora. It was genuinely some of the best Neapolitan-style pizza I've had since Sorbillo in Naples. If you find yourself hungry after hitting the slopes or hiking in the summer, stop by Crosscut for artisan wood-fired pizza and craft beers/wine.
If you're in the market to buy/sell a home or know someone who is, I can help! I'm happy to advise on strategies and provide market resources, vendor referrals, or anything else that would be helpful in your journey.
Michelle Fitzgerald
Real Estate Broker, Realtor®
phone: 970.215.8455
email: michelle@michellesellsdenver.com
Instagram: https://www.instagram.com/michelle_sellsdenver/